That's a good point, but it can also be that the employer is satisfied with the "good enough" results.
While it is true that the current high demand on a job market allows many to have "good enough" skills for employment, I would argue that passion, curiosity, and obsession are the driving forces that lead to better outcomes both for individuals and the industry as a whole. These qualities inspire deeper engagement and lead to more quality work. For routine tasks, basic competence might suffice. However, for solving complex problems, it won't...
Passion/curiosity/obsession often leads to voluntary, extensive practice and learning. This typically results in faster skill acquisition and a deeper understanding of the subject matter. While becoming competent without any of these is possible, the path is often slower and limited.
Also, both the tech industry and the job market are evolving rapidly. Passionate/curious/obsessed developers are more likely to keep up with new technologies and methodologies, potentially leading to better long-term career prospects and adaptability. The pace of change in our industry demands a continuous hunger for knowledge and a relentless pursuit of excellence.
In the end, if you don't want to be a mediocre developer with a mediocre career, such stuff matters.