It points out a real contradiction. If you want to be able to pay people a lot, you need to create an environment where they can be highly productive. The answer for that, in industrial systems, is specialization. If the people are having to think a lot about what they do, they'll spend their time thinking, doing different things, and fixing problems caused by doing things differently -- this work isn't paying work since it comes off their wages.
Another part of the problem is that there are fewer spots the higher up you go on the pyramid. The other day I was browsing the remainder rack at my local Uni's bookstore and found that there's now a "One Minute Manager" book about managing yourself.
I guess these days organizations are being hollowed out, so that few people have a chance to be promoted to management and that many of us don't get the managerial attention we need.