Yeah, and this is how the boss's nephew gets hired into a management position he's unqualified for, poisons the culture, destroys morale, and causes a mass-exodus of quality people.
I wouldn't even hire my best friend without him interviewing with 4 people (individually) who would be working with or close to him. I also wouldn't take part in the interview myself, to ensure that the treatment was 100% fair and merit based.
A personal recommendation gets you in the door to the interview faster, but you still have to prove yourself, and if you're really that good you'd want us to prove ourselves as well before signing on.
That's probably also how Yukihiro Matsumoto, the creator of Ruby, got hired by Heroku. Sometimes an interview really isn't necessary and can only do harm.
I realize (presume?) that what you are saying is meant to be a bit of hyperbole, but most of us are not (yet!) so well-connected that a decision-maker would offer a job without this kind of screening process.