Some young people get caught up in the competitive aspects of music, but they are wasting their time. IMO originality/style/soul, is what really sets you apart as an artist. If you haven't developed that, all the technical tricks in the world won't make a difference. You'll just be another face in the crowd.
Although you're somewhat correct, usually being a highly advanced player with lots of technical skill means you will have decent grasp of theory and composition; you don't put in the tens of thousands of hours of practice required to get good at the instrument without picking that stuff up - people who don't have the passion or interest in it don't get that far.
Technical skill also lets you stand out in a crowd. A phenomenal player who has mastery of advanced techniques will turn heads far more than one who is solid but unremarkable. The success happens, usually in a band - but getting into the company of other good musicians often requires the technical talent. It sure doesn't hurt.
Success in broader terms usually depends on a lot of things: luck, physical attractiveness, exposure, marketing, and most importantly, genre. You won't become a huge star if your passion is for a style of music which isn't huge already. Furthermore, competition matters. We all know the classic musicians of the last 60 years, even if we've never heard of them, because they were innovators in an industry that was fertile; their successes, not to diminish them, were easier because there was more room for new ideas
But now that genres and styles are so well established and there are more musicians out there than ever before all using the available media to promote themselves, the idea of a "legendary" musician may no longer exist. Every time a new one rises, the possibility to innovate gets smaller and smaller. There is never going to be another Steve Vai again because Steve Vai has already been done, and the same goes for Hendrix, Clapton, Page, Malmsteen, etc.