One always has to look at the whole person to understand whether he performs relatively well or not. The guy I was talking about is extremely risk averse. That makes steep careers quite difficult. But all in all, he's probably a happy person. Another example: MENSA says I'm way inside the top 1% when it comes to IQ tests (I didn't want to say 'intelligence'). I don't think I'm in the top 1% most successful people in my current environment, but that's all right as I'm coming from a poor village from a postcommunist country, and everything that comes with it (lack of good education, etc.). So compared to that, I'm doing all right, but naturally it's very difficult to catch up with people who could go to Stanford or Oxford. Not because it's difficult to learn the 'hard science stuff' -- I interviewed many Oxbridge guys and they're not that better than the others when it comes to hard tech/science knowledge. However, they're much better in social skills, self-confidence, usually have better network, family connections, etc. And those things matter a lot.
And I'm a big believer of luck and randomness. Since I've got a kid I wonder how do we even survive, life is so risky, starting from the birth itself.
Anyway, I think perspective gives you more happiness. At least it did for me.