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[Maybe the people screening candidates based on their past need to stop and think about the things they did as a teenager.]
Maybe yes, but what if they will not stop doing such screening? The the problem Eric tried to solve still remains.
As I see it, Eric's suggestion was indeed quite ridiculous, but the problem itself is not. Your digital past can really backfire or harm your future chances in life. [Maybe the people screening candidates based on their past need to stop and think about the things they did as a teenager.] Maybe yes, but what if they will not stop doing such screening? The the problem Eric tried to solve still remains.
I find it strange that people keep writing about what he said, without writing what he actually said, including the context...
Google's founders certainly weren't concerned with their collegiate life being permanent record. http://digg.com/tech_news/First_Google_Site_ points at http://web.archive.org/web/20021030152640/www-db.stanford.ed... (Sergey Brin)
Eric Schmidt's comments are being taken out of context. His statements were a warning that unless young people particularly start taking their online privacy seriously, they may be left with no recourse for erasing their online past, short of some extreme measure like changing their name. But he was not "suggesting" to change one's name - rather, he was warning about the dangers of diminished online privacy.
Try finding anything from 10 years ago or for anyone named Smith, Jones, Taylor, or Patel. I'll bet that doesn't improve in the next ten years either.