I didn't say I don't think my friends are unattractive or dumb, quite the contrary. Just there's no attraction between us so there's no reason I would persue any of them or they would persue me. Just because someone's smart or attractive doesn't mean they'd nessicarily be compatible with you romantically. It has nothing to do with them being 'beneath' any standard, just there's no interest there (but then again, maybe I'm a weird case, I've never had an interest in anyone romantically period).
But, still, the meaning of going from a romantic relationship to just friends should be pretty clear. And again, I still think it's stupid under most circumstances, but I can imagine if I tried going out with a good friend of mine and it just didn't work out I wouldn't want to lose him as a friend just because it seemed like a romantic relationship wasn't going to work. I can understand how it would be painful for the other party if they still have lingering romantic feelings, but then shouldn't he take the initiative to say "I'm sorry, I don't think I can be just friends."