This is why I used picking an athletic team as an example. This is true with athletes, and I didn't want to blur together ordinary bad judgement with the specific kind of harmless miss that happens near the cutoff point.
I agree with you people should not feel bad personally when they do not make the "cut". But when people do feel bad about not making the cut...they usually are not thinking "I should have been judged as #499 instead of #501". They are more likely thinking, "I am way better than #500".
Jason13 is saying that there are plenty of cases where the "stars" often appear mediocre until they hit stardom, at which point it's too late to bid for their talent. It certainly makes a difference whether your team includes the stars or not, and since they often won't be obvious at the initial selection...