And if L&D professionals DO understand the business, if they’re ARE connected to the organisation and what’s happening to people and they are still just turning out courses, then they are doing their organizations a great disservice.

I'd ague that L&D does have a role, but management has the greater one. Something I tried to articulate here http://markbritz.com/the-unintended-consequences-of-702010/ (never as well as you though Harold :) )