We're hashing a million words into a table that can hold four billion. The load factor on the table is negligible. If we're getting collisions it means we need a better hash algorithm.
There is absolutely no excuse for using a hash table without understanding the birthday paradox. If you hash a million words to four billion values, you WILL get hash collisions -- a few hundred of them.
The author is right about one thing, though; this is a good interview question. It identified him as someone who picked a poor algorithm yet didn't even understand that algorithm properly, marking him -- in my opinion at least -- as an immediate no-hire.