I think it does hurt. Especially in startups when you'll be working absurd numbers of hours and spending an incredible amount of time with these people I'd prefer the slightly-less-talented-but-very-good to the absurdly-brilliant-but-completely-intolerable. I definitely glaze over the word "rockstar" at best. Besides, I would think it goes without saying that anywhere I'd seriously consider working would expect all their employees to be damn good at what they do.

Agreed, I actively avoid people who thing they are as it's synonymous with "arrogant twat" and getting things done is about team work, not prima donnas.