Essentially, I see it as a meta-indicator, a way of making decisions in situations where I don't have all of the information.
Another way to look at it would be through the lens of game theory. Game theory is absolutely a field of some consequence, and it's all about relative positioning of agents in a system and their likely intentions after factoring in the likely intentions of their peers.
In a word, you might describe this type of analysis as simply, "wisdom." I find it to be of particular value in entrepreneurship.
I think what everyone ought to do is only ever compare yourself to yourself. "Am I doing this better than the last time I did it? If not how can I do that?" It's a function that's always growing and the rate of growth is how much effort you put in. It's not bounded by the people you're comparing yourself to.
The top physicist in the world deeply knows that he is still learning, but he also knows that he's above average. There are plenty of ways people get feedback in life that tells them that they're above average. I think the real advice is to not assume you're better than someone just because you're above average at X. That person is probably above average at Y. Thankfully, most people who are above average already know this.