Comment by asoneth

> Can someone help me understand when this bifurcation happened

The distinction is as old as art and design. If I had to pick modern moments that articulated it well I'd go with Arts and Crafts followed by Bauhaus.

> solve the right problem for the right people

Solving problems is the core of design and a design can be evaluated on the basis of how well it solves a problem. Whereas art is free to simply exist. Many works have elements of both, but if you hire someone to solve a problem and they believe their job is to make art then you'll both be disappointed.

I'm unsure what motivated the rest of your post though I can feel your frustration. I will say that bureaucracies and processes have been around for centuries, they just shift language every decade or so. There has also always been a tension between the people who Do and the people who Decide but both are necessary for a functional organization.