I’ve worked on supposed “Agile” teams that operate this way, and worked on an Agile team that actually work ridiculously well. The biggest issue with Agile isn’t the philosophy, it’s when management starts using it to cut costs. This comment is what it turns into. Notice that every single one of these points lower cost. But one of the main assumptions of Agile is that the workers control the work, managers support the workers. The places I’ve been where Agile didn’t work it was because management was unwilling to buy into this basic assumption, then use Agile as a crutch for not giving the team what they needed to be successful.
The one successful team I was on that was Agile, the entire group of around 12 worked directly with the customer, and our manager’s role was to ask “what do you need”. It was hands down the best dev role I was ever in (before I became a teacher).
Publicly traded companies are, by law, driven to make as much money as possible for shareholders. Privately held companies are not held to this same limitation. So while a company like Valve could be highly profit-driven (let’s be honest, all for-profit companies in a capitalist system are driven by this motivation), it doesn’t seem to be driven to maximize profits in the short term. This means that they can focus on things other than profit if they so choose.