I agree it looks "hip." I also happened to like the friendly shots of the employees who looked like real people I might want to know.
However, that's an office for sales people. I wouldn't want to be a developer working on hard problems in the middle of that.
...also didn't realize that Hollywood was part of "Silicon Beach," although to someone out of state I guess it's all beach. There's another startup on that corner, named Pop-up Pantry.
Do you allow employees to work at home (even go to the library) part of the day/week? This would mitigate things I'd guess.
Back to the point: It's well known (now) that interruptions destroy developer productivity.
"Human Task Switches Considered Harmful" http://www.joelonsoftware.com/articles/fog0000000022.html
The original: http://en.wikipedia.org/wiki/Peopleware:_Productive_Projects...
Aimed at the boss: http://www.paulgraham.com/makersschedule.html
I have worked in such an environment though and there were huge costs (and true a few benefits). What I found though was that the hard work got done from 9pm-12am over the VPN ... a recipe for eventual burnout.