I haven't seen it amongst my friends (who, admittedly, are usually Googlers). Nor do I hear it from startup founders I've talked to, all of whom have complained that it is ridiculously difficult to hire good engineers.

It's possible that it could be that there are more marginal devs moving out to the Bay Area without many skills because they hear the pickings are good. If you can't program, you will find it hard to find a job as a programmer regardless of how good the market is. But anyone who's got a couple years of experience - or even if they don't, if they've done an iPhone app or a webpage as a hobby project - seems to have many options available.