I agree that you dont have to go to the "top" ortho residencies (that is a topic itself) to get top notch fellowships. Especially in the fellowships that have far fewer applicants that spots, like trauma, peds, etc.
here is a direct quote from an email conversation I had with the chairman of the OTA's Fellowship and Career Choices commitee about this years pool of trauma applicants -
"Chris,
there are about 70 positions. available and only 44 completed applications this year...so it's about 2 spots for every QUALIFIED applicant...about 10-12 are foriegn grads overseas who are looking at this as an easy way to get into the U.S.....so now you are at about 35 or so U.S.residents that are going to all get a spot......so as you can see plenty of positions for good people..."
that being said, you still have to be a good applicant to be competitive and get the spot you want. Just because there are more spots than people doesn't mean that places that consistently fill and are "highly desirable" are gonna end up taking just anyone.