It's worse because there are far fewer hires.
I was only in the job market very briefly before giving up on the whole mess and starting a business. I didn't finish college, so it was brutal. The jobs I did get were non-traditional companies who took a chance on me. Sales jobs in particular will give anyone a chance to prove themselves. I came to deeply appreciate that.
As far as "the 37Signals way", that path isn't right (or even available) to every company.
In my little bubble, everyone is a developer and never leaves the house without a large stick to beat off the hordes of roaming recruiters :)