Preferring people over projects creates a situation where you are carried by your status rather than your work. If someone had a successful project, it doesn't necessarily mean their next project is going to work. A total newcomer could potentially solve a very important problem (but get their funding denied because they are still not the right "people" to invest in). This also makes it harder for new ideas to propagate.
Funding should be a mix of track record with project consideration, not either exclusively.
Funding should be a mix of track record with project consideration, not either exclusively.