If they sensed that, it might hurt your chances of getting an offer. (I don't mean to be a downer, and I really hope you get it and it's better than you expect.)
Oddly enough sometimes an employee kicking ass during a technical interview and coming off as a "great deal" is a bad thing. They may realize you'll likely leave in 6 months and they'd rather invest in someone who will need to stick around longer.
To that end, I decided that I wasn't even going to bother preparing for the interview, and I'd just wing it and see what happened (this was likely a defense mechanism - if I don't bother to even prepare, then it doesn't reflect on me if I do poorly / don't get the job). Feeling how I do about the interview, if I don't get the offer then it doesn't hurt my ego since I can be reasonably sure they passed on me for the exact reasons you described.
That said, I did try to do some preemptive damage control. I asked about opportunities for advancement in the company, expressed an interest in the certifications they mentioned, etc. In the HR interview, when asked whether I could be happy in a testing role, coming from development, I explained that I had enjoyed the bits of testing experience I had as part of my last job, that I wouldn't mind a break from development at the very least, and that any development itches I had could be scratched by my side project. Incidentally, this also opened the topic of intellectual property and all that, and she said that there were established procedures for that, and that it wouldn't be an issue.
So whatever happens, I'm ok with it.
Employment is like dating - you're more desirable if you've already got a job. The number of companies willing to speak with you dramatically increases - and why wouldn't you trade up if given the opportunity, especially if this current job is "below" your standards to begin with?
In the mean time, you are stuck at a job where your skills are wasted and where you don't get much money.
Very inefficient market.
Obviously there are plenty of great programmers with no finance experience, and going through recruiters does not work for recruiting programmers.
If you are hiring an HR person, you get too many applications, and you need someone in the middle to weed out obviously unqualified people. But for programmers, there are not nearly enough candidates that reviewing each resume would be too onerous, and recruiters can't ask the right questions to separate excellent candidates from mediocre candidates. If I saw a resume that said "experience writing Haskell and QuickCheck tests", I would call the person that instant. When a recruiter sees that, though, the resume goes in the garbage because "it doesn't say TDD", or "we need 10 years of experience with Java", or something. While it's true that we aren't hiring for a Haskell position (though we do use Haskell), it's also true that someone who's good at Haskell will pick up Scala pretty quickly. (They might not want to switch languages, which I completely understand, but it's nice to give them the option.)
Anyway, industry still doesn't "get" programming, but we are getting closer. Some day. Some day.
(We also do some weird things, like find great candidates and then say, "oh yeah, we can only give you a four month contracting position with no benefits, and also, we can't pay for your relocation". I'm sad that we can't hire people, but happy that good programmers won't take such an obviously shitty deal.)
The job is basically entry-level testing (0-2 years experience, the ad - which was otherwise inaccurate -said). The technical interviewer did mention that experience wasn't necessary and that they regularly interview people with literally no experience - they just look for people with the right mindset.
She seemed to indicate that my technical background was a plus, and I definitely showed that I understood what the job required.
Still, in the first interview, the HR woman noticeably hesitated before giving a salary range, indicating that she was probably aware that it would be a pay cut for me (also, if HR feels the need to give a number first, that's probably a bad sign in terms of expectations of overqualification). As I said above though, going into the technical interview I really didn't care if I got the job or not, and it wouldn't kill me if I didn't get it, especially since it would be very obvious that the reason wasn't underqualification.
About a week ago, I found a job for a software tester that asked for experience with a number of programming languages, so I assumed it would at least be a technical position and it might be a nice change of pace.
They called me for an HR interview n Thursday, and that's when I discovered that they apparently no longer needed anyone in my area. They said they could need me in another city relatively nearby (4-5hr. drive from here, so I'd need to relocate), but the position was just black-box, no-code testing. They also asked me for my salary requirements, and when I hesitated (as I knew it would likely be below my expectations), she spoke up and told me the typical range for the position - about $10k less than I was making before.
I decided I needed the money, so I did their technical interview the next day. I think it went really well (there were at least two instances where I answered a question she was about to ask as part of the question preceding it) so I'm expecting an offer, but it still feels like a major blow to my ego to even be considering taking the job.
I figure I'll set a one-year limit on the job, training however I need to in order to get out of there by then, and I'll use my salary to help fund a project I want to build. Lemonade from lemons.
The point is, sometimes you just need to do what you need to in order to keep going. If an employer is offering insulting wages or seems abusing/untrustworthy, or if the job would be too big a burden (uprooting your family for relatively low financial gain), that's one thing, and I fully understand declining those jobs. If the job is reasonable, and you can't afford to be out of work any longer, then your ego needs to take a back seat to survival.