@Axesmi: first of all you contradict yourself. In the first sentence you say management is smart and later you conclude that they are dumber than dirt.
Secondly: the Peter principle simply states that people are promoted to their level of incompetence, i.e.: as long as they are competent they keep being promoted, and in the position where they are no longer competent, they are stuck, because... they are incompetent. It says nothing about them being dumb.
Just a thought: maybe people should be hired at the top level and you keep demoting them to their level of competence. The reversed Peter principle. Though I suspect it would wreak havoc in employee motivation.