I think it depends on what level of position you're looking for. I wouldn't hire a rookie for a telecommute job. I want to be able to mentor that person in person.
When you hire a rookie, you're trying to create the best through mentoring, providing experience, etc. It's a great and very productive thing to do if you can afford it but it's not the sort of position he's talking about.
I would add this caveat though. If I'm hiring a rookie and I wouldn't trust them to be able to get up to speed and be able to contribute without constant supervision, I would pass. Yes, when someone's just starting out that person-to-person interaction is great, but that can be accomplished with an open Skype/iChat video window and some desktop sharing.
hga hit the nail on the head though - I'm not talking about every hire, I'm talking about bringing someone onto a team that can "hit the ground running" with a "large and evolved codebase" or any other of the number of things tech companies/recruiters talk about.
I recently talked to one fairly established company out of Chicago who was looking for a new lead dev for a re-architect they were doing of their system because their in-house guy botched it. The second I said that moving wasn't high on my list of things to do they were gone. They wanted a "rock star", so long as they set the terms.