This is supposing that the all of the excess demand for good engineers is coming from companies that have gotten good at hiring and have moved passed these "we

This is supposing that the all of the excess demand for good engineers is coming from companies that have gotten good at hiring and have moved passed these "we only hire the 0.1%" mentalities. In a lot of places there might be extra, hard-to-satisfy demand because their processes for sifting through the supply of developers is poor or not working.