However, it's not always easy to pick out the "best" residents. Given #applicants >>> #spots, programs can easily find quality applicants to fill their openings. This is especially the case for those applying to clinical educator tracks. What does a PD go by then? Step III scores? LORs? These all look fairly similar from one applicant to the next. Often applicants stand out by the IM program they come from and who is endorsing them. I think connections can help seal the deal, of course assuming that you meet the minimum academic qualities for a particular fellowship program.
For those applying to research track, however, the quality of your research is going to be key. These applicants tend to appear less homogenous than those applying to clinical educator tracks. I can see how quality of research may outweigh connections in this situation.