Sure, but don't be too sure of that. Having spent many years both in IT and as a consultant, I can tell you that most people have very little idea of how the structure of the company that employs them works, so "I don't see it" doesn't mean "it's not there."
I met another consultant at an ACM event who told me this story. His largest client hired him because they'd laid off an entire layer of middle management. The new CEO had come in, looked at the org chart and asked, "what do these people do?" Nobody knew, so he said "get rid of them." That turned out to be a damned good way of finding out what those people did, which turned out to be all the functions related to coordinating the different parts of the organization. Management brought him in to find a technological fix that would save them the embarrassment of hiring all those people back.
Of course I much more often dealt with the opposite problem: people seeing business value in procedures that just move data around. I don't know how many times I've been handed a fat sheaf of "reports" to analyze, only to discover that it contains almost nothing but busywork.
In any case I think the question posed by the summary ("can this work elsewhere?") is the wrong one. If it works *anywhere*, it's bound to work somewhere else. A better question would be "Which organizations could make this work?"
In my experience the most critical factor in whether an organization will succeed is the quality of the people work for it. An organization full of nothing but intelligent, open-minded, cooperative and conscientious people would tend to succeed no matter kind of management structure you chose for it. A strongly hierarchical business structure tends to work well for tasks where you do the same thing over and over, or churn out things to external specifications. A flat, non-hierarchical structure tends to work well in situations where an organization has to redefine itself frequently, as in response to chaotic business environments. But that said, good people will tend to make any structure work in any situation.
Each style of organization has its drawbacks. Flat organizations sometimes spend undue time making routine decisions as they struggle to get everyone onboard. Hierarchical organizations have multiple single points of failure where one bad manager can ruin the efforts of everyone working beneath him.