Observability is hard and I agree with the approach you've laid out, especially on the involvement of leadership insight. It's crucial and it has been omitted or ignored while working on this for a decade. The tooling improves but the same organisational problems persist. And there's an over reliance on hyper-competent people to get this working well than on an agreed set of practices that help offset the average competency that exists in most places. Don't get me wrong we need competent people but I find that when they leave so do the good practices.
Redefining it is not going to do much since these are organisational, cultural problems which all happen to be the issues that hobbled DevOps and the SRE movements and we all know how those movements turned out - they never matured into any of the promises they made.