The rise of internal recruiting teams is definitely promising. We work with a lot of companies that are smaller and/or growing at a slower rate and therefore can't justify a full time equivalent for recruiting. They're hiring maybe three or four people a year. For those kinds of orgs I think "making it a core activity" is just as important, and perhaps more difficult because they can't justify full time help.
Good on you if you've figured out the formula for retaining employees that are potentially on their way out the door. I'll stand by my statement that it doesn't happen often. I'd love to read a blog post about how to do it successfully! :)