Of course you're right. But that's the point of the article.
Companies, departments and teams operate on a spectrum from reality-centred to status-centred.
In a reality-centred culture all the things you mentioned matter. Reality-centred management understands this, manages it, and rewards it.
Reality-centred cultures are better at medium/long-term planning and at handling issues rationally.
In a status-centred culture the most important product is status in the hierarchy. A "competent" engineer delivers status to superiors. That's their only job. The quality of the product, codebase, and the customer relationships is secondary - sometimes irrelevant.
Status-centred cultures tend to be reactive, not innovative, and the orientation is emotional, not rational. Hierarchies are strict, communication is poor, and low-status people are treated badly. (Because how else is everyone else supposed to know they're low-status?)
No one cares when things work smoothly, but if there's a problem that causes a loss of status, someone has to be blamed for it.
Status cultures don't necessarily implode. If they have an effective monopoly, they can survive for decades.
They're more likely to seem like huge players until suddenly one day they aren't any more, and everyone wonders what happened.