I ran my company like this (and have recommended to clients a similar approach). It still doesn't work the way you are thinking.
The "strong lead or senior developers" you're talking about: I call them TMs. Technical Managers. Because that's what their job becomes when the PM isn't technical enough. In the end, it's not the PM who "turns out fine" when paired with TMs; it's the combo of PM and TM who turn out fine.
There does exist a big difference between "lead or senior developers" who are good at development and those who are also good at using their technical knowledge to manage a team's work. A non-technical PM lacks that essential latter part, and if they have to rely on a "developer" to step up and fill that role, they're still a PM, but they're not the sole person doing PM any more.
Thank you! I could not put it into words, but yes this is pretty much what I observed.
They turned out fine if somebody else do that technical management work. Except that if not recognized as such, that someone else is not paid appropriately, does not have official authority nor ctual support of boss nor is he present at higher ups meetings to speak for himself. It makes the leading part much harder and is breathing ground for resentment or simply getting tired and giving up. And then it all starts failing.
It is kind of like saying that senior developer does not have to know all that much, if juniors are very good. Sure, but then your juniors are actually on underpaid senior positions. And it ki d of works, until junior senior figures and finds better place to work at.
