Interesting that you brought IIT up. Though I barely cleared IIT JEE and did not attend it for I could not get CS at any of the good schools, I had the feeling that it was becoming more and more hackable with the proliferation of coaching institutes. When I was in a top 5 PhD program which attracts the best of IIT K/B/M guys the quality drop became more evident over the years. There were and are still very bright IITians at my school, but I saw more noise coming in at later years.
And for those who are not aware- there are cram shops in India which 'train' you to clear Google/ Microsoft interviews. And this has been going for at least 6 years, if not more. Now from talking to my friends in India I get the impression that the superficial interview difficulty is higher in India than the Bay Area for similar companies. And that is despite the work quality being much higher in Silicon Valley.
It's all very funny and ironic.