The problem with this becoming the only reasonable tactic writ large is that it creates social bubbles just like social media. You wind up with very insular cultures and I think at least some of the hype addiction problems seen in tech can be attributed to these echo chambers. It's a hard problem to solve, especially now with LLMs being force amplifiers to low effort hiring and job seeking attempts. But to not solve this problem will, I think, continue to make increasingly unwell companies and unwell industries as the "meme pool" gets very shallow.

I ah e not seen this play out in practice at all. In 25 years I’ve been at 8 tech companies, all of which came through connections.

None of those have had an insular bubble - typically you know a few people, and they each have worked with a few others, but unless you go all “6 degrees of Kevin Bacon” on it, none of these jobs look like what you’re describing.