That might be true at the seed stage, but no competent VC is going to keep funding you if you've launched and aren't able to demonstrate that some people love your product.
Of course, product/market fit is not a sufficient condition for success. You also need the market to be big enough.
On the other hand, the OP's assertion that money just flows to people who "look right" (my words, but true) without real regard for the product itself, applies largely to seed money only. A proper Series A round (or more) should require a strong product and customer feedback. So I think my point still holds. Seed VC is looking at market opportunity and founders who "look right", not a killer product that customers love, because the product may not exist or have a significant customer base yet.
Of course, product/market fit is not a sufficient condition for success. You also need the market to be big enough.