In my opinion, knowing people in person allows you to convey who you are and what your goals and talents are. Whether knowing someone over the internet or in person, at least if someone knows you as an acquaintance or a friend, they will be more willing to go the extra mile for you. You can also and get a better perspective of what the employer is looking for. If you do get to meet the recruiter or employer, that will be the most ideal situation. You can tell from their body language about what their thoughts are. I disagree that possessing good knowledge is not important. I feel that to be credible in your job search, good experience or knowledge also plays an important part in getting the job you want. Knowing people that can help you get that job is a bonus.

I totally agree with Bread & Butter on that. In a lot of industries, it is about who you know. The more connections you have in the industry you want to be in, the better the chance at getting the job you want.

I just asked a similar question on how to find a new job thru networking, because I feel that there is a hidden job market out there which could very possibly be what I am looking for. I am in sales and have been in sales for almost 10 years now. And I think that social networking is the best way to get a job these days.