This is completely untrue. Experience has shown over and over again that software cannot be developed quicker due to increases in manpower and money. The Law of Diminishing Marginal Returns still applies to software, and at some points, adding more people slows the project down. This phenomena has been experienced and documented by some of the greatest minds in the field.
Sorry man, I experience these kinds of things on a daily basis, and I agree only partly with you. The slowdowns can definitely happen and I agree on the Law of Diminishing etc etc, but this is not a thing that some good project management and some dedicated programmers would not be able to solve. It is not as if they are trying to invent a new piece of software. The specifications, business needs and functional needs are documented. they just have to implement.