A lot of people don't see the effects of their decisions. They leave a company after 3-5 years and go and work somewhere else where they get to make the same mistake again. The bottleneck indeed is lack of competence.
As for technical bottlenecks, it's quite easy to hit a wall. Be it through layers of stupid or unexpected success. We have unexpectedly reached the limit of what is possible with x86-64 on a couple of occasions due to stupid decisions made over 10 years previously for which there is now no longer the budget or attention to fix.