I've been on several faculty search committees. Yes, someone can interview very well, and have a resume that matches the desired skill set, so that they stand out over and above any other candidate. Last committee I was on, we had a tenured professor apply- he had experience, his skills complimented the skills of the current faculty, he was a fantastic lecturer. We knew he'd be our #1 because all the other people we were interviewing had less experience, and skills that overlapped with people already on the faculty.
So it may have been that they were looking for some particular qualification, that the OP didn't have, but someone else did have, and they knew they were not going to hire someone without it. On one of our searches, we specified that the candidate must have a MSW- that's a requirement of the accrediting body. One candidate got past the initial screen by saying that she had a MSW, but as we checked her resume, we found out she didn't. We could have contacted her right away and told her she didn't get the job, because no matter how well she interviewed, she wasn't going to be hired without a MSW.