It's fine in the private sector, in theory. Take GM, if GM goes down, fine, we have twenty other firms that are or will take it's place in supplying customer needs and wants. Of course do to politics, GM, and Ford and the wealthy private profiteers of Chrysler, will become like AIG.
Anyways, back to large Organizations. They are like having all your chickens grown in one single fifty mile long coop. Something goes wrong, you get a disease, you are screwed.
It is better to have many approaches to production. There is no perfect approach, that works at all times, everywhere. With different approaches, if one is found at fault, you still have many others that can go forward and use the information of the single failure.
It is not that Bush/Paulson/GS et al are bad people. It is that they are invested in the very system, such as it is, that produced this mess, which is really a collapse of a belief system. The Gods of Directives, CDO and leveraged to the thousands cut have been exposed as a delusion. The struggle now is about who gets the clean up bill. So far it has been the taxpayer.
Nailed it brother, nailed It!!!