I agree that most management, especially upper management, in most companies (especially very big organizations) are thinking parallel to what you are saying here (the scene from where Neo is standing in front of his boss comes to mind from the movie Matrix) :)
However, management is a necessary thing to do many times, well, in order to manage the project in hand (sorry to point out the obvious). A good manager must know, especially in the world of IT, you need to take care of people who are working on the project, get out of the way on things you're not the expert on, etc. etc... In my opinion the most important role of a manager is to enable communication between his team and for him to communicate current information to people himself. This current information is not alway easy to communicate in a large group. This information/teaching can also include agreed (by not just management) processes for a team to work together. I believe in looking for ways to best communicate these agreed processes and to teach them as easily as possible. I think gamification can be a good way to do this sometimes. Gamification does not mean playing games. If we look at gamificiation parts we'll see that it parallels papers written in how to best educate. I can't go into that in a short text but quick research will reveal that.
About the world you paint, it is not the entire world my friend. It's true there are a lot of organizations you might have to live that but there are also places you can experience a different world. I think it sucks that so many organizations fit in your description and we shouldn't have to look so hard to find a more functional organization. I also think a sure way to change that is for good people to not settle for the world you describe and leave and go work for an organization that appreciates you more.