That good taste doesn't translate between domains very often. Good taste for developer tools doesn't mean good taste for a video game inventory screen. And that's the crux of the problem. There is a segment of the labor market calling themselves "product manager" who act like good taste is domain independent, and spread lies about their importance to the success of every business. What's worse is that otherwise smart people (founders, executives) fall for it because they think hiring them is what they are supposed to do.
Over time, as more and more people realized that PM is a side door into big companies with lots of money, "Product Manager" became an imposter role like "Scrum Master". Now product orgs are pretty much synonymous with incompetence.