Being connected and having the same hobbies and coming from the same IIT as the hiring manager will help, not hurt you. Is anyone denying this? That's why all the career advice boards remind merit-focused new college grads that "it matters who you know, then it matters what you know".
On the other hand, there isn't a lot of room in organizations for people who don't get it done at all. Merit - or at least the appearance of merit - matters a great deal. Maybe in larger, more mature organizations and industries people can hide out and network with the right people to stay in their no-show jobs.
However, bootstrapped startups don't really have a lot of sinecures for random "VP, Business Development" slots to go around.