Does this bother you? I think they are just trying to eliminate management overhead by using peer evaluation to set the company's direction by consensus. This could maybe be chaotic, but I see it as a trade-off. A traditional structure is chaotic in its own way. Like, who gets promoted to upper management? The most deserving people, or lucky people?

Arbitrary decisions from an executive may or may not be better than popularity contests. I guess it depends on the executives and the culture.