I'm curious what you would suggest as an alternative. Completely flat orgs have worked occasionally in the past(?) but in general I hear horror stories about those as well.

If you've not read The Gervais Principle yet, I'd suggest spending the time to do so.

https://www.ribbonfarm.com/the-gervais-principle/

To be clear, the principle is one of many lenses that you can view the world through. I suggest it to be used as but one tool in your mental tool box. However, it is a good tool.

If you have read it, then I am also at a loss as to what to do with 'the clueless'.

I'd suggest trying to engage in more 'powertalk' with 'the sociopaths' and trying to mirror the path of Ryan the Intern. But that deep cynicism just rubs me the wrong way. Perhaps I am more of a Toby in the end.