As a skeptical corporate peon:

This is an attempt to make everyone an "individual contributor." In many ways this is good, even great: people who manage processes are often crazily, even completely out of touch with the work it takes to actually complete their processes. See that lsherwood post.

But then again if i didn't have a manager of some sorts I'd really never do anything.

1) I note as a multi-year extremely-intermittent Zappo's shopper that 2-day shipping is no longer standard; instead 4-5 BD shipping is the new "free" and those white kicks I need for my Halloween costume this Friday just got $15 tacked on for 2-day, which of course is all that will do, except it used to be this was a benefit of using Zappo's not a cost;

Therefore

2) I wonder as a banker, a corporate peon, a worker, a consumer and therefore as a person who reads "let's get rid of bosses" and concludes "let's get rid of hierarchy", if what Zappo's is really trying to do is just cut their costs and maximimze profits now that they done got caught and their manager needs to answer to another manager