HN has rehashed this debate plenty, but I don't think you should necessarily see this as an example of a dramatic failure of the Google SWE interview process.
Homebrew became a success due to great vision and execution, not because it solved a challenging technical problem. Howell seems like a great guy who would probably make a great senior developer, founder or PM at any company that aims to solve customer needs.
Google's focus, however, is on hiring SWEs that can solve uniquely complex and difficult technical problems. The merits of such a narrow focus is obviously up for debate, but if that is to be your goal, this hiring decision aligns with it.