I really hate that statement. If a person with more qualifications than the jobs requirements wants that job, then give it to him. I only see it as a win win.
Then there was me: "Sir you are perfectly qualified, exactly what we were looking for but we can't pay you the salary for this position so here is our (lower) offer". Yeah NO. Fuck you. I just stayed at my old job underpaid, overqualified BUT appreciated and under little pressure