One of the functions that SRE provides in our organization is building out the platform and solving cross-cutting problems. How do you do that without some reporting structure? Shared ownership and guilds can only go so far since each team has its own priorities and incentives (and will rarely choose to yield engineering time to platform things if they can devote it to product things).
I’m not arguing against an embedded model, but I do think there’s tension that’s not easily resolved.