Is talent overrated word?

Diklu asked this question last night at San Mateo bar. I couldn't help but ponder over it hrs later, is it really?
To define talent, it is a natural ability to perform certain activity. So if a person, say cricket player, plays well, would he be called talented or skilled? Skill is something that can be gained by practice. A talented person is naturally skilled and a skilled person acquires those skills by practice. Are we saying practice is replacement for talent now? Well, I'd say it depends on the trade. A manual physical labor like job may be perfected by enough repetitions. For an imaginative job like that of an artists, painters talent differentiates between a good artist and a great artist. There is no upper limit to imagination and creation of an art form is far beyond the skills needed to produce it.
So, the question remains, whether a person is talented or skilled? And I believe, it cant be answered as there is no way to objectively quantify either of them. We loosely use the word "talent" only to mean that a person possesses great skills. I would not necessarily agree that this word is overrated, but I must also say that it is certainly used loosely.