On a smaller team, hiring high performers is obviously important. But for large organizations, there is a WIDE tolerance for incompetence. Hiring staff consistently underestimate how much can be learned on the job. Mid-managers are much, much more easily replaced than anyone wants to admit - and if you are already hiring lifestyle employees, you may as well be hiring a diverse set of project jockeys.
I won't go so far as to say merit is a myth, but adequately assessing merit at scale during a hiring process does feel pretty fraught.