From my perspective, "settling" is just a term and maybe an excuse!
No one is perfect. Some people are perfect for each other. I think as life goes on and people change, and we find ourselves in an every day life which has started to be less than satisfactory. Then we may have thoughts of "I settled" when we look at the other person as the means to our life feeling unsatisfactory. Yet when you began that relationship, it was perfect enough to commit to it.