let's look at famous examples: Carly Fiorina? Marketing. Brigitte Ederer (Siemens)? HR. Meg Whitman? Marketing (started as a Brand Manager)
the cute moniker is unnecessary, I agree. the overall observation is correct.
i agree in particular with the fact that once HR takes over hiring from the team-leaders, the company has jumped the shark. one of the core tasks for a manager is hiring, ensuring his/her team is correctly staffed and has enough fresh blood to ensure senior people can move upward or away without disruption. if you don't, the Peter principle is in play.
overzelous HR is the ruin of a company because by definition HR has no clue about the core competencies of a company, no feeling for its customers nor products/services.