I would look at it the other way around, it is far more likely that if you train and compete with the best you will reach closer to your full potential than if

I would look at it the other way around, it is far more likely that if you train and compete with the best you will reach closer to your full potential than if you train and compete in “minor” leagues (thinking about sports, specifically soccer). So, I think the OPs point was, if you could compare one individual with themselves they would perform/grow better in an environment with more performing peers. I would add, not everyone with the “raw talent” can deal with the stress and pressure of competitive environments the same way.