Interesting read. I've had my share of office politics in my career so far and it still baffles me how often it happens that people who add little or no value to the company become so entrenched and powerful. It's like the upper management and/or owners are blind to what happens within the company, despite the clues and complaints from the staff.
Those who focus on their position in the bureaucracy will almost always beat those who focus on the ostensible goals of it. Although in this case there were conflicting goals....
By "democracy" you mean "republic", and it's long been known, and was remarked upon by our Founders, that they only work with a moral people. Which we are clearly no longer. We're steadily transitioning into other forms like empire and oligarchy because of that.
From what I've seen, these people who adding little value and yet climbing the ladder are often people who could add value, but instead use all their energy to play the advancement game. Which makes it all the worse, in my opinion.
Meanwhile, best people leave the company.