But maximum efficiency does not scale linearly with organisational size/product complexity. So yes, lots of wastage, but still possibly the least wastage of other tried-and-tested organisational models.

Also, effectiveness of software relates to the attributes that align to the dimensions of "goodness" as defined by each user not the developer. The software does not have to be the best (among its peers) to be the most effective for me. The same software may be completely ineffective for you, if what you want out of it is different to what I want.