Indeed. I went though their "interview-process" a while back at the request of a friend that was there and desperately wanted me for his team. Interestingly, I failed to get hired, and I think it is because I knew a lot more about the questions they asked than the people that created (and asked) these questions. For example, on (non-cryptographic) hash-functions my answer was to not do them yourself, because they would always be pretty bad, and to instead use the ones by Bob Jenkins, or if things are slow because there is a disk-access in there to use a crypto hash. While that is what you do in reality if you have more than small tables, that was apparently very much not what they wanted to hear. They apparently wanted me to start to mess around with the usual things you find in algorithm books. Turns out, I did way back, but when I put 100 Million IP addresses into such a table, it performed abysmally bad. My take-away is that Google prefers to hire highly intelligent, but semi-smart people with semi-knowledge about things and little experience and that experienced and smart people fail their interviews unless they prepare for giving dumber answers than they can give. I will never do that.
On the plus side, my current job is way more interesting than anything Google would have offered me.