Most of the posts will probably be "yeah MBAs don't contribute anything" versus "engineers are geeks who can't communicate". In reality MBAs working for companies usually know what the company does in detail, and there are plenty of engineers who can communicate.
It's still an issue though, because the opportunity cost of learning about "business" is less learning about something else. According to this article,
Business majors spend less time preparing for class than do students in any other broad field, according to the most recent National Survey of Student Engagement: Nearly half of seniors majoring in business say they spend fewer than 11 hours a week studying outside class. In their new book, Academically Adrift: Limited Learning on College Campuses, the sociologists Richard Arum and Josipa Roksa report that on a national test of writing and reasoning skills, business majors had the weakest gains during the first two years of college. And when business students take the GMAT, the entry examination for M.B.A. programs, they score lower than do students in every other major.
The rise of MBAs is also tied to the rise of finance. Most people agree that the US funneled too many resources into the finance sector, which then just destroyed them. Instead of designing more complicated mortgage securities, those physicists could have been doing physics. Although "managing" doesn't necessarily have to be about finance, most business schools spent a lot of time teaching their students about CAPM and Black-Scholes. (If you don't know what these mean, good for you!)
But of course business schools are not a fixed target. Most have reacted to the financial crisis and are now, for instance, emphasizing globalization and how to work in multiple countries. Time will tell I guess if this path is any better.
Personally, I think the biggest damage is done by the outlook that most MBA programs teach. Instead of thinking that your company's goal is to build the best vacuum or whatever, you learn that the goal is to maximize shareholder value, and that gaming the system is what everyone is doing. Over the long run, countries probably don't want too many of those people in charge.