Seems to me, Rob, that a lot of what you are saying here goes back to a really simple observation - people do things while structures condition what people may or may not do (in the sense of rewards and punishments). Actually, I think I tend to agree with your general argument but, only, if your forces get rid of that insane Up or Out policy. The only way you can nurture talents is allow them to be used but, if your HR policies require different talents at different levels (which they do), then you have a serious problem.