To give an opposing anecdote, I've landed more than half of my full time permanent positions through personal recommendations or references from people I know from university. And these jobs have by far been more interesting and/or better for my career than ones I found through recruiters or vacancy ads.
So, recommendations and references from people who never saw you at work. There's something wrong about that. I am not saying it doesn't happen, it does, but it still makes very little sense.