is Hierarchical organisational model bad ?

Most of us say that hierarchical organisations are bad and not suitable for product development/knowledge related work. At the same time, I have started believing that, it is not the hierarchy as such that is causing the havoc but it is the way the organisation is structured within the hierarchy. Product development environment is supposed to be collaborative and cross functional. When the org structure doesn't support the collaborative nature, it leads to sub-optimal results. One can still have a networked model structure or a holocratic structure, but if it doesn't support the collaboration and cross functionality, product development would fail. Question is.. is it the model(networked, hierarchical, etc) or the structure that is driving the behaviour the outcome ? Just to clarity, the structure includes the way the model is organised, HR policies, etc.