That’s the way Amazon does it. They used this method to develop the highly successful Echo.
There a great answer on Quora to the question What is Amazon’s approach to product development and product management?
For new initiatives a product manager typically starts by writing an internal press release announcing the finished product. The target audience for the press release is the new/updated product’s customers, which can be retail customers or internal users of a tool or technology. Internal press releases are centered around the customer problem, how current solutions (internal or external) fail, and how the new product will blow away existing solutions.
Meaning if a project team can eat more than 2 pizza’s it’s too large. They break up a project or complex issue into smaller focus projects. This way solving issues or completing projects more quickly and easier and smaller teams have less communication lines. With other words a less complex governance is required.
I think scaling of projects and time-to-market are here the real advantages of this two-pizza team rule.