Actually, their problem extends beyond the bad reputation; its a bit of a self perpetuating cycle.
They've erected significant barriers in the interview process to avoid hiring lower performers, but they have a pretty high turnover. As a result, I suspect that they're grossly understaffed (a manager as much as admitted it when I interviewed there a couple years ago). So if you manage to navigate the hiring gauntlet, you're setting yourself up for long hours and high stress. Pay is pretty good (tho not particularly better than their SillyCon Valley peers), but its pretty well known that most people don't last more than 2 years.
Hard to imagine why high-demand IT people would choose to work there, but it does seem to have a lot of cachet in Seattle. Bottomline: Its not a place to build a career, especially if you also want a home and family.