This statement hinges on the belief that these 90% of candidates fail because, while qualified on paper, they are not actually qualified for the job.
I suspect it isn't actually true, and that in reality the Google interview process fails very large number of actually-qualified candidates, while also admitting a large number of not-actually-qualified candidates. In short, I suspect beyond pre-screening people for paper qualifications, the actual on-sites have an effectiveness in the order of a coin toss.
But yet we take pride in failing hordes of people, because it somehow implies nice things about our surviving it. Somehow the fact that the process for hiring programmers doesn't involve any programming, and that we are hiring people to architect large systems by solving isolated CS101 algorithms questions, doesn't bother us.