You mentioned middle management do not normally add value to remote development. How would you fix this? Besides removing the layer :-) is there any model where they could add value?
Many middle managers have been moved into that layer from technical roles. They are often happy to return to more technical work.
In my projects I don't use a middle layer. I have the technical people who have the core scientific/development/production skills and I have a final decision layer of those who by reality have the final say over how money is spent and which goals to prioritise.
This has worked very well up to about 50ppl with exceptionally low overhead. That said, would not try this with people I can't trust. But I would never hire people I can't trust.