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Dog, we're all engineers. And the worst business leaders I've ever worked with directly were good engineers before they got promoted into positions of management (or started their own terrible business, as the case might be) in which they had no business being because the skill requirements for engineering are not automatically transferable to managing people. It's called the Peter Principle, and there's some real truth to it.
Haha yeah that's true but I don't think it negates what I'm saying. Some people aren't cut out for management and that's perfectly fine. However, getting an MBA isn't going to change you from one type of person to the other. Assuming that the basic characteristics of a manager are present in either case then I absolutely believe that an engineer will make a better high level leader than an MBA.
Sure, an MBA is sort of useless. Management is largely based around personality. And you can't really teach personality. It's the same way for a lot of professions, like teaching, actually. In fact, I'd say the management pool should be drawn from people who were accomplished high school teachers. There's a lot of crossover there in terms of organization, planning, and dealing with a bunch of people who all hate the work you make them do.
I'd rephrase it to be, "People who've worked their way up the ranks within the company have the most experience at all levels and understand what it takes to provide a good product. Those people can make good managers."
Jag-offs that graduate Stanford and just want to extract money are leaches and should be salted immediately.