For me, the cover letter was more to see if the person could be a fit with the team. In my career, we usually had some pretty tight knit teams, and if someone wasn't a fit, it wasn't good.
If the cover letter looked good, and they had some of the qualifications we were looking for, we'd bring them in. Then after the first interview, if we liked them, they met the rest of the team. The team fit was the most important to us providing they could do or learn the job.
We had guys who were damn smart, and either had huge ego's or were really awkward around people, especially the customer. They were more than qualified, but we'd have to spend time coaching them on how to work with people. If they couldn't, we would have to let them go.
So, in my opinion, the cover letter is to reveal more of your personality than a resume can.
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