"When the rubber meets the road, some engineers are better than others and it affects the end product."
This is overly individualistic. A given engineer is not better or worse in some absolute sense. They are better or worse at a given job, which takes into account many other contextual factors: the specific goal, the rest of the team (who will be pursuing a that goal cooperatively), and the unique challenges which face that team/goal combination.
For example, it may be that your engineer Dmitri is best at solving particular types of design problems, but he only speaks Russian, and he's having trouble on a team with no other native Russian-speakers.
In this case, the "best" engineer to hire for Dmitri's team is a Russian, even if they're "worse" at solving design problems on an individual basis. In the abstract, hiring an engineer based on the language they speak goes against the meritocratic ideal, but in practice it is obviously the decision which best moves the team toward their goal.
More generally, one could say that even though language-diversity is not obviously or directly related to engineering effectiveness, it is still related. Having many languages represented on a team increases the odds that the performance of people like Dmitri will not be limited by a language barrier in the first place.
It's funny you mentioned "the world as it is" vs "the world as you want it to be". Because from my perspective, you're describing the world as you want it to be: each person has an abstract platonic "skill value" which can be objectively and universally evaluated, and which translates predictably and directly into metrics like load-bearing capacity. This is a lofty ideal, but does not reflect how organizations and teams actually achieve goals.
"The world as it is" involves orgs with lots of subjective, local, interdependent systems which often involve interpersonal dynamics, norms, and emergent social phenomena, all of which have an indirect but very significant effect on metrics like load-bearing capacity.