Yup, and it seems to happen more in the UK than elsewhere.
I came across a role on LinkedIn and applied. Can't remember when exactly last year. Late December 2012, I got an e-mail from the hiring manager. We agreed to meet up in Bracknell (C&W).
Here are some of his words:
"How do you know these things.....?"
"I think you are more entrenched in VF, compared with me or even my boss....."
"I thought you didn't know some aspects, but I now see that you know more than what's needed for this role...."
"Are you sure this is what you're after? I feel you're over-qualified for this role. You definitely know more than I do...."
He was honest. And so was I. When he asked me my thoughts, I said they needed to improve rapidly, or many C&W ppl will go in the VF integration.
We're quite good mates now and chat on Skype, etc. But it's one way, as he benefits from picking my brain.
Finally, to answer your question, it can make sense to join. Ask about progression, etc. Or..... if you're desperate for a change or need a role, then it would make sense to join. Saying that..... sometimes, good things come to those who wait :)