This is not a software development process issue. If management is bad, doesn't understand the process, and there isn't buy in then the project will fail. Take that same team and same management and do it waterfall and I doubt the outcome would be any different.
But it is not just management that is at fault. Those developers did not have enough backbone to push back. Instead of educating management about the process or telling them it can't be done they just sulked back to their cubicles and coded. There is no surprise it turned out wrong.
I see where you're coming from on this; you cannot build any product without communicating with the stakeholders. That communication can be rough scribble diagrams, notes, detailed requirements, meetings showing off prototypes -- really anything. All software development processes are about communication.