I don't understand, are you being sarcastic and implying Google and Facebook are really bad places to work?
I read it as: much of the top talent today is going to Google and Facebook. If the same people who are applying to Google and Facebook are applying to your small company, you are doing much better than most people in recruitment.
I think what's really remarkable is that Fog Creek does it with products that, honestly, don't seem to have that much "cool" factor. No disrespect intended to Joel or the employees, but I'm somewhat amazed that a bug tracker and a wrapper around Mercurial garner as much excitement from the developers as they do.