I'm not sure I'd call this a competence issue; it's more of a context issue. If you put talented people in a thick bureaucracy they cease being able to display those talents. I wouldn't view people working in a corporate bureaucracy as having "gone blind" and lost their competence necessarily (especially in this job market). It's like when a hockey team trades a player and suddenly the player doubles their output, because it was a bad system/skill fit/etc, they didn't magically become more talented on the new team, and they hadn't lost their talent on the previous team, they just needed the right system for the talent to show through.
Even without the bureaucracy - it can be other developers themselves who shoot down suggestions for improvement or radical rethinking.
About "going blind" - note that the post describes some fish as never developing sight to begin with. It can be like that with developers, who have never known better, and most of their industry experience is at that very company. Or they come from another company with similar problems, or have switched from a different language they worked with elsewhere etc.
