Correct. It's also possible that, as a candidate, demonstrating token emotional attachment to a job posting positively correlates with advancing through the candidate funnel.
That company likely has culture issues then? I've never even heard of anything like that before. I've heard people say that their HR doesn't understand them or what they do, but this is taking it to another level.
His theory was this. He like everyone else wants the top 5%. Some of those people graduated from standford and have a clean job history. Those people don't spend much time looking for work. While smaller in number, great people with odd backgrounds are likely to spend longer looking for work. So, if you actually want the best look for them in the rejection pile.
Clearly this is not going to scale, but it really depends more on other companies being defective not a poor culture at your company.
PS: I am more of the opinion that focusing on great people is a mistake. Most competent people can be great, when in a role and team that fits them.
PS: I had someone insist on the opposite process where they only looked at people who HR rejected, their team was awesome if a little odd.