It looks like you're conflating the manuscript improvement aspect of peer review with the signalling/filtering role of journals. Academics consistently say that the former process is important and worthwhile, while enthusiasm for the latter (particularly the need to publish in the highest profile journals) is mixed.

Your analogy works well when applied to the latter, as competition for scarce resources (i.e. grant money and jobs) 'selects for' ever more showy publication records.