Somewhat true. Platform teams have to be engineering & product led. I run a platform team and we work very closely with our customers to understand what problems they are facing and identify platform level solutions for those problems. But we are still hampered by the team not using the platform for their everyday work, reducing the empathy they have towards its papercuts. However, being purely product focused can lead you astray of your users. Our PMs invent capabilities that no one really asked for ignoring the rather large backlog of capabilities that they already need. That's also bad.

The problem with every platform team is that, impact is hard to nail down. Does X using your platform Y to generate revenue mean your platform Y has indirect impact same as X? Most companies don't think so and end up destaffing their platform teams. Until, the destaffing ends up in much more inefficiency because everyone is inventing their own crooked wheel, spending time on the same capabilities and detracting from product development.