Mind Dance Marketing interview questions

I was immediately taken aback. The atmosphere was warm and inviting. My name had been written on their chalk board and as I entered I was directed to the interview room. It was impressive. This interview was the follow up to a couple rounds of phone interviews. There was a panel. Everyone was VERY nice. I answered all the interview questions. There was wonderful energy and interaction. UNTIL - the owner, Ms. Tina, made this statement. "You seem to have all the right answers. You're energetic and fun. But I question whether or not you're competent for the position..." Umm...the position for which I've interviewed twice and have made to the final round - with only one other candidate...that position? I immediately questioned why I was even their considering their salary offer (which was more than 25% below the average compensation rate for commensurate work and experience.