I strongly agree with this, and I'm glad you put it so clearly. If you've been in your industry say 10 years or more, you should have built a reputation by that point that makes people say "I want to work with that person again, or I'd recommend that person to a friend who has a job opening". (Important thing to clarify, though, I'm not denigrating anyone who has been out of work a long time. I've seen many categories of jobs in the tech industry where there are simply a lot fewer jobs to go around - it's musical chairs and a lot of chairs got taken away all at once).
I would put in an important caveat, though, and that's for people who are early in their careers. The hiring process really is truly shitty for people just entering the workforce and for people with only one or two jobs under their belt.