As far as ATP students being mediocre, ANY pilot, no matter where they are trained can be mediocre.
It's been my experience that whether you train at an FBO or a pilot factory, what you get out of it is what you put into it. I did my private at an FBO, and most of what I learned was self-study. My instructor did not require me to go the extra mile, I was simply taught the maneuevers I needed to know for the checkride. Everything else I did was on my own. Now that I am at ATP, it's the same. I'll get out of it what I put into it. Self study and understanding is important to me, I'm not here just to pass the checkride and slide by at the bare minimums. I'm here to learn, study my butt off, and be one heck of a pilot. Will ATP make me that? Nope. I WILL MAKE ME THAT. ATP is just providing the structure and foundation, I'm doing the grunt work.
Sure, there are some people out there that just strive to be mediocre - but you can't say that it's just because they go to ATP/DCA/RAA etc. As for me, when I upgrade - it's gonna be RAD. And I WILL be a great Captain because I *want* to be, not because of how fast I can get there or because I'm an "ATP wonder...."