The is funny to read because it captures my feelings on this exactly: when you're a company of passionate people driven by a mission from the top down (very important this alignment is
genuinely top down), the drawbacks of the TLM-like position are totally workable: the org gives some grace and flexibility to everyone involved knowing that the TLM is sacrificing some effectiveness as an IC, those under them are losing some room for direct impact. It all works out as long you're able to "grow the pie" and make up for the smaller slices by executing.
Once you're late stage though, that's done. TLMs are probably being held to 100% of IC standards and manager standards, people under them are jockeying for "impact" and don't want to compete with their manager, etc.
I totally see why it wouldn't work at today's Google. Honestly maybe it's a positive sign they recognized that.