At a guess you're projecting other managers complaints on to me. I'm not in the U.S. and don't have these problems.
So you've got actual words from actual me:
* Those three people are worth the bidding war. They're worth 10 times the next rung down.
* I need to fill the position with the best possible person. It doesn't matter that Google et al have take the top people, I still need a new engineer.
* Universities generally suck time and deliver little. Spend the three or four years getting a ton of experience and participating in the community and you'll jump ahead of someone who's passed university, but doesn't have their own project.