Well, they're recognizing the symptoms, but missing the point completely.
It's the typical IT professional's misconception: "I'm using computers, therefore my skills are based on mathematics."
No, no, no, no, no. A programmer is a linguistic being. Mathematical skills are most definitely a plus, but in my experience, the most gifted developers are the ones who are also able to express themselves verbally and in writing, and who understand the difference between the thing and "the thing".
Mastering a programming LANGUAGE is different to mastering a human language only in that when programming, you're actually CREATING a language. The levels of abstraction are immense when you know what you're doing, as is the power, and really - if non-geeks like Heidegger, Foucault, Berger and Luckmann had the tools back then that we have know, they'd been friggin' ecstatic!
You want a good developer? Look at how the resumé and application are written and constructed. You can sort out the first 90% of crud right there. Find someone who knows how to express himself or herself concisively and correctly and you have a starting point.
(Btw, I'm Danish, so I know my English is crap ;) )