As a startup person, I had to seek out the opportunities to build a product as part of a small team each quarter at UW CSE. That said, you can do it if you have the motivation.
All the literature about the program mentions that you can optionally take 1 capstone course (which are the big project courses that let you have free creative reign over what you produce). My solution was to just do 3 capstones instead.
I ended up taking the Google/Hadoop project course, distributed systems capstone, and Dan Weld's web services capstone. Each quarter I had 3-4 people on a team, and we were able to build something awesome.
To me it always seemed like a problem of advertising the opportunity within the department, and encouraging big risky projects vs. focused, assigned classwork.