You can easily find teams of 5-10 in any company with no duds in, but the nature of stack ranking is that every year someone is going to have to take one for the team. If you don't know who the sacrificial goat is, it's probably you.
Yes, but you're not stack ranking in only teams of 10. You're stack-ranking 10 teams of ten. Out of 100 people, I can probably find 10% who are duds vs. their peers, but they might you might have teams with 2+ low performers.
You take a high performing team and rank its members. You take a low performing team and rank its members. When the numbers go to the next level up, the worst person in the good team and the worst person in the bad team look the same to the system - even if the worst person in the good team is better than the best person in the bad team! This is how the system works in practice. Good people get shafted because they sought to work with other good people.