Getting close to graduating and trying to find an internship and I just have one question;

Do project teams in the real world disappoint as much as project teams in college? Or will I actually have people who aren't brain-dead working alongside me?

i think the key for any project partners are giving them low expectation. That way they dont dissapoint as much lol

They will likely be more experienced, so try to tap into that if you can!
Especially, they'll know about the real world. Software development is more than just programming and most of it is not taught at schools.
As for the level of knowledge: expect highly specialized people that know lots about a single thing. Also, most experienced people I know are very opinionated...
But no, they will unlikely be dumb. After all, they managed to keep the company afloat so must be good at something.