The costs associated to managing teams without an ambition for excellence are substantial. As far as scaling an org goes, building average teams scales better than having exceptional teams, because by definition, exceptional teams are the exception. But if you work on a project that has winner-takes-it-all dynamics, the costs of average teams are immense.
I really don't get why people argue so much against it. Nobody debates it in sports or music. Not every software project is like the world cup championship. But if you're in a VC market where the winner takes it all, yeah, then it's a lot like music or sports. You want your team to have the ambition to win.