1. I don't see how that applies to the analogy of higher maintenance costs.
>if you really want/need a job that doesn't require your education and experience, then you can't brag about your education and experience that is irrelevant.
2. That is a double edge sword. If one removes expertise to pretend to be junior, then they are vulnerable to a junior who inflates their resume to appear more competent.
3. Also, putting your past experience isn't bragging, it's, as you said, honesty.
It's good business to (all other things being equal) hire the best person you can find at the price you can afford. To do anything otherwise is nonsensical. I can't think of a good business reason not to.
Having said all of that, I'm so glad I haven't had to use a recruiter in nearly 20 years. It sounds like a cluster out there.
I have strong social anxiety that is at its worst in interview situations. When I try to 'edit' my answers to questions like that instead of giving a straightforward and honest answer about the stuff I've built and the experiences I've had building, my brain spins endlessly trying to model all possible 'edits', the possible responses, and possible counter-responses.