I couldn't have said it better myself.

The best engineering teams I've encountered are ones that have an Engineering Manager. The hierarchy is Project/Program Manager -> Engineering Manager -> Engineers. The engineering manager (of technical background) cultivates the engineering team, instills best practices and makes final decisions, without having to sit in endless meetings with the business side (the program manager's job). The engineering manager is usually the hiring manager for more engineers.

It's not a sexy, flat organization, but day-to-day operations are less like herding cats and more about promoting technical excellence.