It's still the case that other than search and ads, most of Google's biggest hits were acquired rather than the result of in-house initiatives (even Google Analytics, which is probably one of their more heavily-relied-on products, was acquired). Google doesn't hire people who will create stuff like Android; they hire people who can pass their interview process, and get new product and service lines mostly through acquiring teams of people who probably can't pass their interviews.

It's also the case that Google is acquiring a reputation for bad interview/hiring processes, and for hiring people who have a Ph.D. in CS and putting them to work on CRUD web apps that any random coding-bootcamp grad could build, since there's just not enough interesting in-house work to keep all those top talents occupied.