Do you think applicant tracking systems has made internal/external recruiters more or less effective?

I have found that many recruiters rely heavily on the ATS to identify talent and they are not as skilled in direct sourcing and truly identifying talent. While the ATS does make life easier administratively, I feel that many qualified applicants are being overlooked by some recruiters. Thoughts?

We have a Focus Community member that is looking for some help with this - any insight?

http://www.focus.com/questions/human-resources/do-you-think-applica...