They definitely mean something. But they are strictly based on talent.
As with any bell curve, the best is further separated from the 20th percentile than the 20th percentile is separated from the 80th percentile. That’s why the 5 stars retain separation from the pack.
Some HS players are over or underrated to some degree due to injury concerns, misuse, scheme fit, etc. However, a coach that can motivate his players to work harder, or can teach better can move the needle (more easily in the middle of the bell curve) to become better than some of the players that were ahead of them. I think PJ is masterful at finding kids willing to put in the effort, cultivating that trait, and it turns out is much better schematically than I initially gave him credit for. Seems to me he is helping our student athletes pass many that were rated ahead of them.