Simply not true in 2013. They are aggressively hiring engineers of all sorts. College degrees are less relevant. Google, of all companies, have developed some of the finest talent recognition software in the valley.
Google, of all companies, have developed some of the finest talent recognition software in the valley. Maybe they have, but we won't know without hard evidence. Your assertion doesn't make it so. I like Google, I've eaten in their cafeterias (many friends work there), and I use several of their products. And ... I'm aware that essentially all of their revenue comes from AdWords and AdSense. Everything else is subsidi…
I would argue that most of the Google products that are successes today in terms of users: Gmail, Chrome, Android, Maps, Search, etc have competed on the same merits as similar products from competitors. Yahoo Mail or Hotmail, for example, are subsidized by other products as well.
I don't think Google has a monopoly on talented individuals, but I do think Google has a better culture than other companies. You can have the smartest people, but a shitty internal culture can act to break their innovation, not multiply it. I've worked at IBM and Oracle and definitely, very smart people at Oracle that I knew of were hampered and stymied by a suffocating corporate layer.