My understanding is that Palantir is running an engineering mill/sweatshop using fresh out of school CS grads (particularly from Stanford). That much of their time is spent simply writing client-specific code that imports and cleans up data from disparate enterprise systems. That its not challenging, innovating, or exciting. Of course this is all anecdotal based on what I've heard from friends and a Palantir engineer…
Yes, it's consulting. Palantir has done an amazing job branding itself as a product company even tho it's mostly not, and for a long time, up to ~1000 employees in 2012, branding itself as a startup. A surprising number of my friends and classmates (Stanford '12/'13) ended up working there. Stanford emails out a jobs summary for each graduating class. For 2013 graduates the #1 most common job title was Forward Deploy…
Having said that, I think the intention was to describe Palantir in relative terms compared to other companies in SV. With that in mind, then yes, Palantir is one of the worst places to work at among companies of the same type: well-funded startups with a rather convenient revenue stream.