I disagree. A PM is an excellent communicator between engineers and the rest of the organization. It's not a matter of dysfunction, but a way of filtering what is important and what isn't.
I've been in both situations where a) I am in direct contact with the rest of the organization and b) where an intermediary is. I prefer B and that is what a PM is for.
Some large organizations may be able to eliminate the middle man, but I wager they've dug a ditch so deep they can't tell the difference.
if the film crew \ theory x idea is right then an org aisation that is becoming dysfunctional hires more PMs
I suspect that they are symptom initially and then cause.