Without data, my default assumption is that there are lots of cases where things are being done wrong that are not in Amazon’s favour. The “directed incompetence” theory assumes that clueless people are being intentionally allowed to be clueless with the full knowledge of somebody less clueless. I find it easier to believe, without evidence, that the cluelessness exists at all levels.

I don't totally disagree, but people respond to incentives, and are thus going to be that much more motivated, at all levels, to notice, escalate, and solve a big that impacts the bottom line. It's hard to get a man to understand something when his salary depends on not understanding it, as they say.