I think you're right. Speaking from current personal experience, it's not unusual to get 500 applications for a job, especially higher-level jobs like Principal engineer (where people are chasing the title and salary). I would guess 90% of them are clearly underqualified. Of the other 10%, nearly half will never respond to a follow-up email to schedule interviews. Of those that do, 3/4 of them will reject the offer for various reasons. Given I have a lot of other duties beyond hiring, spending the hours upon hours it takes to sort through that only to have it yield no fruit is ... demoralizing at best.

It seems to me that if somebody can actually solve the problem of increasing signal-to-noise ratio, they could do very well.