As mentioned, there is a difference between bias and uniform bias. In the US the media, politics, social media, and even miseducation
(e.g. in my deviance class we focused on Kinsey's 10%, yet oddly enough never contrasted that against contemporary results) have heavily and uniformly biased the population on sexuality leading people to
vastly overestimate the number of homo/bi/trans individuals.
Where it works phenomenally well is in areas where biases have not been directly instilled into people. This does not mean people are unbiased, however. Again the knowledge of trivia is a good example since while the crowds can generally do phenomenally well even at very esoteric questions where biases would lead them to individually come to very different conclusions, yet they will invariably fail to answer ostensibly trivial questions like 'What is the capital of Australia?' You'll get Sydney, it's not. You'd likely get a similar result for things like the capital of Pennsylvania.
In a way I view the wisdom of the masses as analogous to machine learning systems. They do an oddly good job of providing extremely precise answers to a wide array of questions even when trained with models that do not directly represent the 'questions'. Yet you can also break the systems, at times comically, with certain types of queries designed to do precisely that.
And as was the case with machine learning for quite some time, I think people remain reluctant to utilize it due to the black box nature of it. The implication of your comment is that the wisdom of the masses is little more than incorrect answers canceling out on average leaving nothing but a survey of experts. Yet I think there's no evidence for this (even if it may be a perfectly logical 'kneejerk' reaction) as it works even on things where nobody is an expert, and if this were the case then we ostensibly should be able to get comparable answers from coordination - yet coordination causes the entire system to collapse.