When the DM makes a call, it's always DM Fiat. When the players like the call, it's good DMing. When the dislike the call, it's bad DMing.
Player entitlement vs DM fiat is simply a question of who at the table is the ultimate authority for the game, the DM or the players. Player entitlement is simply spreading the power around, with no one person as ultimate authority. Some games work well with this, certainly, but that's not always the case. Those arguing for player empowerment are missing the obvious, if DM fiat is "mother may I" then player empowerment is "group may I."
I don't see how one is inherently better than the other, save that with the group deciding you get decisions that potentially increase the entertainment value for the group as a whole, but story-wise you end up with too many cooks spoiling the broth.
This, like most things, isn't a binary. It's not either or, but a spectrum of options. In the most draconian session of D&D under the most tyrannical DM, the players are still empowered to make decisions for their characters.
As the authority for how the characters interact with the world the DM has created, certainly the DM has / should have more input than players.
Rule Zero shouldn't be: "These are guideline, throw them out if you want," or "Have fun." Rule Zero should be: "Don't be a dick." Some people entertain themselves by being dicks to others. Sometimes they DM. Walk away, don't post about player empowerment, players have all the power they need in the form of a character sheet and their feet.