I also knew a chief who was so intelligent that he figured out how to cheat on the advancement exams by figuring out the pattern the computer used in the answers. He was a millionaire Navy chief. He told us he spent every leave he took alone, reading in his cottage he owned in the-middle-of-nowhere Montana. He would definitely fit into that 1% you were talking about, but he still performed in his job quite well and even helped the Navy improve in other areas.
There is a huge difference between being so intelligent that a person is crazy and can't actually accept the real world and being so intelligent that a person just doesn't fit in well with the real world. I think your 1% estimate is those that just don't fit in well. The number of those who can't actually live in and interact with the real world is probably closer to less than .0001% of the population.