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In a completely different arena, I have dealt with the exact same issues and come to similar conclusions. I served as an aircrew evaluator for the Navy for 10 years. To evaluate aircrewman, we give open and closed book exams. If they pass the exams, they can take a checkride in which we evaluate their ability to perform their duties. Fail the test, you don't qualify for the ride.
In my experience, there were people that were great "book knowledge" people who could not perform under pressure. Many of them also had poor people skills, which are not conducive in an environment that demands teamwork and cooperation under heavy stress. Perfect scores on the test did not predict ability to perform. But I never had anyone achieve bare minimums on the test that then impressed me with their superior ability during the check ride. Those that did well on the performance side always started with outstanding test scores.
To perform in a superior fashion, you must by definition have at least above average knowledge. But having above average knowledge does not in any way guarantee you can perform well.
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