The baseline expectation in the original post also applies to the SVP: he knew enough to know that things aren't unreasonable to start with, this expectation might not apply to all companies.
Offloading the detail onto the team allows the org to scale higher by allowing the leader to bring more teams/problems into the mix. But it also introduces the complexity of keeping those teams in close enough alignment that the overall effect is still positive.
This is by no means guaranteed to be positive, and there's a lot of details to get right for leadership in making this work. But they are different details than what each individual team was bringing to leadership.
Abstractions are helpful, in business management as much as in systems architecture.
It seems like you're trying to rebut my argument by presenting my argument as being against a less strong version of the original claim rather than understanding it as being literally just a counterargument to the specific version of the claim I thought was too strong.