While it may indeed be possible to ensure positive morale for "over-qualified" individuals through "empowerment" as they say, that very empowerment isn't always realistic, available, or possible. Sometimes it is for a small minority which leads to an ultra-competitive culture among many "over-qualified" folks.

In any event the negative morale that can ensue when many over-qualified people do mundane work is quite detrimental, draining, and contagious. I've experienced it and am happy to now work in a place with a different kind of culture.

It makes sense that HBR which espouses a business school point of view would argue this, because the system works for orgs that use it, at the expense of the drained individuals that burn out. Since there is such an over-supply of talent, it's an employers' market and an outlook like this one can be espoused. We do need to remember that it's not pretty for the folks involved.

The problem of how to employ these folks in empowering jobs, when there are so many of them: not something easily solved.