Yup, the idea doesn't work the way they say they want it to
When you break up a dedicated team and spread it around you destroy any momentum the team had by spreading the impact of the individual team members against the inertia of the team they are thrown into.
They come in as the least senior member, they have to learn all of the teams shared knowledge, and generally end up on the bottom of the pecking order, or resented for being inserted at the top. So when they try to influence the teams decisions, they are automatically out voted. Nothing changes.
The dissolution of trustworthy computing at M$ preceded a rapid devolution in software quality. Ironically, one of the main public justifications was that the team was causing delays in releases by forcing quality improvements and putting too much priority on technical debt. The result was that quality plummeted and the rated of missed deadline got worse instead of better.