It is
reasonable but it is not necessarily the smartest way of going about things.
The question of whom things are visible to is an important one. Your comment says "management", and yeah that's one common way of thinking about it. But managers are just individuals with their own motivations. It is really "the business" that wants visibility in order to best accomplish its goals. There is an assumption that "management" is better aligned with "the business" than the employees they are paying "exorbitant" salaries to. But that may or may not be true, managers are also just individuals with their own motivations. So to the extent that it is true that managers are better aligned with the business, why is that the case? I see a few things that trend in that direction: compensation that is more tied to the performance of the business (through bonuses or what have you), more visibility into the goals and reasoning for decisions being made by leadership, and a better grounding in the dynamics of the business (what is the strategy, how does its market work, how does it make money). The theory is that because of those things (and probably others I'm not thinking of), the managers are better suited to be representing the interests of the business, whereas the engineers are just tools those managers can use to further those interests.
That is one way of doing it, probably the most common way, and it definitely seems like management visibility into work is extremely important in such a setup. But another way might be to align the engineers with the business in the same way managers are: pay bonuses based on the performance of the business, give them visibility into goals and decisions, teach them about the strategy of the business and the dynamics of how it makes money. That is, give the engineers ownership in the same way management has ownership, and trust them to make decisions that are in the interest of the business.
To put this another way: if you trust managers to make decisions about trade-offs that are in the best interest of the business, why can't you trust engineers as well? Are the engineers dumber or shiftier than the managers such that they can't be trusted with this?