I have have noticed a trend where most job offers ask for WAY over qualified staff. For example you must have awesome 2d and 3d skills to model rocks for a game that ends up looking like a turd.
My question is whats the point of the nudge-nudge-wink-wink game where both parties involved know that no fucking way someone that good will want this shitty job?

Because nobody wants to admit they're working on low quality games that they can hire any old person for?

Simply to scare away those who lack confidence. If you look at a job offer's description and say to yourself "Wow, I'm not good enough." Then you save them a lot of time in the hiring process.

I guess it's the same reason most companies have 'mandatory' 3+ years experience listed. Just one more thing to filter out the people that they know will never make it.

Heres a related question, should someone with no experience but with an excellent portfolio still bother sending out his resume to companies that ask for only people with experience? Or are they just going to throw away the portfolio before they look at it because you didnt meet their qualifications?

You need experience to create an excellent portfolio, and experience builds confidence. That doesn't always mean work or school experience. Schooling alone is nothing to stand behind. Your work will prove itself. I think these requirements are only posted to filter out the bad artists, or those with poor work ethics.

Or it's just the studio being a little too optimistic.