What's described here is over-generic code, instead of KISS and just keeping an eye on extensibility instead of generalizing ahead of time. This can happen in any paradigm.
Classes - and class hierarchies - really let you go to town. I've seen codebases that seem totally impossible to get your head around. The best is when you have 18 classes which all implicitly or explicitly depend on each other. In that case, just starting the program up requires an insane, fragile dance where lots of objects need to be initialized in just the perfect order, otherwise something hits a null pointer exception in its initialization code. You reorder two lines in a constructor somewhere and something on the other side of your codebase breaks, and you have no idea why.
For some reason I've never seen anyone make that kind of mess just using composition. Maybe I just haven't been around long enough.