Not to play an "argumentative dick" or anything :), but...

Sometimes mediocre is good enough. Not every employee needs to be a superstar. Personally, I don't care that the receptionist is the best receptionist in the world; I care that he/she is polite and competent enough that I don't need to worry about reception.

Also, be careful in deluding yourself that there aren't surprisingly good candidates out there that don't have such a high opinion of themselves. Some of the best people I've ever worked with didn't get the best wages and deals. In fact, the people with the "best" packages were often 2-3 rungs lower than the best employees.