As I was reading Martin Fowler's famous blog post Is Design Dead?, one of the striking impressions I got is that given the fact that in Agile Methodology and Extreme Programming, the design as well as programming is evolutionary, there are always points where things need to get refactored.

It may be possible that when a programmer's level is good, and they understand design implications and don't make critical mistakes, the code continues to evolve. However, in a normal context, what is the ground reality in this context?

In a normal day given some significant development goes into product, and when critical change occurs in requirement isn't it a constraint that how much ever we wish, fundamental design aspects cannot be modified? (without throwing away major part of the code). Is it not quite likely that one reaches dead-end on any further possible improvement on design and requirements?

I am not advocating any non-Agile practice here, but I want to know from people who practice agile or iterative or evolutionary development methods, as for their real experiences. Have you ever reached such dead-ends? How have you managed to avoid it or escaped it? Or are there measures to ensure that design remains clean and flexible as it evolves?