By not applying for the position you have already made the decision for the company, that they don't want you. The interview panel's job is to decide if they want you. Your job is to decide if you want the job. If you do then you apply, do your homework and put your best foot forwards. If you don't then you don't apply. Whether or not you might or might not get it or what they might think of you is irrelevant. The only variable over which you can exert influence is yourself and in this context you can only influence the company by applying.