You live with a few roommates. It's not hard to find housing in SF for 900-1300/month if you're willing to make some lifestyle tradeoffs.
So that he and his peers think that continuing to live like you did in college isn't that big of a logical leap when you consider that their interview process feels exactly like a final exam in college, despite the fact that you and I and indeed Google's own success stories know the difference between theory and practice.
I thought that's exactly what people in the startup world glorified.