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If you were as big of an idiot as Carl Peterson with such a lousy rate of success who has been granted amnesty due to absentee upper management would you want to bring in someone better than you?
Carl specifically wanted Herm for the same reason millionaires don't socialize with factory workers or why super models don't go out with farmers. People tend to stick with their own kind.
In this case a bunch of never has beens and never will bees who feel comfortable in their own mediocrity gather at One Arrowhead Drive where an absent boss really doesn't care what happens.
The lunatics (mediocrity) are running the asylum (arrowhead).
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