Larry Wall is famous for writing a series of impressive programs like patch and perl. Paul Graham is famous for selling his company and writing a book. Paul might be a good programmer, but his book didn't have much technical material in it, so I really couldn't say. I don't know Lisp, so I wouldn't be able to tell from his code anyway.
In general, I feel like the whole "languages for smart people" thing is often hauled out as an excuse for writing obfuscated code that would fail your test 2. Most of us are less smart than we like to think when it comes to programming, and even smart people are often smart in different ways.