I think this is actually a critical observation. By giving DMs relatively unrestricted control over many aspects of the game, the strongest side of the system is using it for the approach the DM best masters. Some DMs are naturally able to weave together the ideas of players and a third party author to something truly unique and magical, and for those DMs D&D is an extremely strong system for running that kind of adventures. Others are masters of making up cool new content to see and explore no matter what direction the players might want to explore. And for those D&D is an incredibly strong system for that style of play, as it afford them the power to use that strength.
A system handing all power to the a GM benefits tremendously from all of that GM's strengths. But it also suffers from all of the GMs weaknesses, as it doesn't provide any support to mitigate those. This is in my mind the critical design tradeoff when it come to the extent of power a system should give to the GM.
I'm just not sure how any system can compensate for GM's weaknesses. Either you can weave a compelling narrative or you can't. In a DM-less game it's different of course, but even then I can only imagine a player without the proper skills could be detrimental to the game, even if not as much of course.