Letting all devs freely prioritize working on technical debt instead of implementing features that adds business value sounds out of touch with reality, to be honest. As a dev it sounds awesome though :).
It is somewhat counter-intuitive at first glance, but it makes total sense if it is setup appropriately. When devs are not going through a business unit or manager, and instead are directly responding to customer needs themselves. Then they won't prioritize refactoring as highly as you would think. They will have a real customer with a real need in mind when thinking about work priorities. Whereas when their manager tells them "no you can't refactor because adding new value is more important" the decision seems arbitrary and uninformed. Because the manager does not understand the pain and risks of the technical debt as fully as the devs do. So dev teams that directly work with customers have the best information and the most stake in choosing correctly, being answerable to customers.
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It is somewhat counter-intuitive at first glance, but it makes total sense if it is setup appropriately. When devs are not going through a business unit or manager, and instead are directly responding to customer needs themselves. Then they won't prioritize refactoring as highly as you would think. They will have a real customer with a real need in mind when thinking about work priorities. Whereas when their manager tells them "no you can't refactor because adding new value is more important" the decision seems arbitrary and uninformed. Because the manager does not understand the pain and risks of the technical debt as fully as the devs do. So dev teams that directly work with customers have the best information and the most stake in choosing correctly, being answerable to customers.