I disagree and think the software model described works better when done well. I have seen this within a company, where both the hardware side and software side used the same titles (senior, staff, senior staff, principal). The hardware side used largely a combination of industry tenure and especially whether they had PHDs/patents/inventions or not to determine these titles, while the software org was very gung ho on using responsibility and influence to determine promotions. The other thing this led to is in the hardware org, often people would get hired on as senior staff or principal, while this almost never happened on the software side (nobody could get hired on as these roles as they couldn't possibly meet the rubric, as it required some outsized impact in the company with thousands of people using software you near singlehandedly developed and maintained).

As other people pointed out in this post in a roundabout way, titles only matter at all internally to a given company. And considering that, compare these two systems; yes the software org in this system does end up in a position where a 25 year old that's been at the company for 3 years could be senior staff, but that's very telling, to do that, they absolutely had to ship something novel, useful to many, and keep it running and good. Knowing that someone is a very well educated graybeard that invented something at Sun in 1989 is also some good information, but from the context of communicating with people in other orgs within a company I don't know so well, it's more valuable to me personally to understand whether they are responsible for a large running process and to what degree, moreso than how long they have been around and what they did elsewhere.

Yeah I have similar thoughts. I think you have to just consider the situation holistically. Senior with two years experience? Ok, this person is obviously skilled, and has the ability to create value and have impact, and has seriously impressed people in their org, but they're still early in their career and they probably have future mistakes to make and lessons to learn.