I would have a mixed response
We have some fantastic staff in roles they are technically over qualified for who I would re recruit in a heart beat. These people tend to be people who are looking to tack a step back for lifestyle reasons (easing off before retirement, work life balance, family commitments etc), or enjoy the more pratical side rather than management
When i would be hesitant is when people are reluctantly in the role. You might get people that abandon the role very quickly which is a pain as a manager because you pass up other decent candidates, invest in all the induction training processes and by the time they are fully functioning they are looking to leave again.
The bigger problem can be attitude though. Sometimes people accept a lower role, then want to be treated like they are at the higher role. Eg feel like they should be treated differently to others, get all of the good bits and be listened to, but dont want to take any of the responsibility. Equally they just become frustrated. This can cause a lot of friction and create a bad atmosphere for everyone in the team around them.
Often you can pick up the people that are happy in that role vs forced into that role at interview
Its up to you which camp you fall in. Only you'll know how you feel if you are "below" less experienced staff in the structure, if your manager is less qualified than you and how well you tolerate not being stretched at work