[I have elevated this comment on my last post to a post so that readers will see it.]
Yes, The issue here is not networking perse but its place and use relative to other factors. Networking in a useful sense is collaborating with people to gain insight share resources and do anything that results in a more productive outcome. However the problem arises when networking surpasses functional things in importance. When you connections are more important than your work or ideas or your advertising is more important than product your are selling then there is a problem. In a sense it is an odd commentary of sorts on the level of rationality our society possesses. As much as we like to consider ourselves products of the enlightenment we really are sort of primitive if not mystical about many of our decisions. Of course instead of the sun god we worship "the market" brand loyalty and the ivy league.