A few months ago b_b, mk and I (And possibly blackbootz, I don't remember perfectly because alcohol) were having a discussion about hiring processes, and how there are a number of assumptions behind the meritocratic system that many people (Myself included) who support the idea don't consider. First, there's the assumption that team/corporate success is best predicted by individual merit of candidates. Second, the assumption that you have good metrics for merit. That is, you are assuming that you are able to accurately measure the presence or absence of qualities that you believe to be good predictors for productivity/success. Regarding Can they all be wrong?
It is entirely possible for them all to be wrong. Doesn't matter who 'them' is, as long as the group is composed of people. Lots of peopled believed that the earth was flat, and every single one of them was wrong.