Like all things, balance is required. Engineers and finance people need to be on equal footing, to serve as a system of checks and balances. The when either group becomes to strong, it spells doom.
It's usually the finance types that win these struggles of power though (I'm not exactly sure why), so don't have as many examples of engineers destroying companies. Though, I think Google might be a good example of flaky engineers taking over and the bad that results from it.
RCA basically set up an unworkable scenario and management did not heed the sunk cost fallacy to realize they were down the garden path. A stylus based cheaply made consumer electronic device with the technology at the time was pretty much impossible (and then of course by the time tech had advanced a stylus based system was totally moot). You could have hired manhattan project people and it wouldn’t have changed the physical/economic realities of what they were trying to do.