Even if they're building important capabilities for a team's core product, they're doing it in a way that is basically impossible to schedule, on timelines that are impossible to reason about, because "passion" is idiosyncratic.
Yeah, passion is a bit of an x-factor, isn't it? By itself, it is meaningless. You may get something unexpectedly great or unexpectedly bad. But, using myself as an example again, I was able to get a project at work done well ahead of schedule because I had already been working on something related in my spare time.
Passion (about what? quality? new technology? learning? building things? these are all different things) doesn't hurt anything. It's not a bad thing. It might even be a good thing. But it is not a crucial attribute of a new hire on most teams. If you need passion, consider whether you're hiring cofounders, not teammates.
Inasmuch as someone is proud of a project they did and can talk enthusiastically about it, and that project is related to work currently going on at the company they are applying to, I think a passionate candidate can be better long term than another candidate that is initially more competent and more effective. If experience is the main reason that candidate A is more competent and effective than candidate B, then candidate B may eventually surpass candidate A as a better employee simply because passion drives candidate B to keep honing his skills in his free time. I think this is especially true for college graduates or other junior candidates who may not have anything else to go by but their projects.