The irony is I don't have a Phd or Masters for that matter (I do have a BS). The universities much like industry would rather have someone with huge relevant industry experience than someone who has a Phd. It looks better on their marketing to say "We have the person who invented X, used by millions of websites" or "We have this best selling author" (in the English world) than "We have a person who got their Phd"

That's for adjuncts though. I think for full-time professors they have PhD requirements per the accreditation boards that they need to maintain. But once the quota is met they can hire anyone.

There is less of an oversupply because it's easier for CS PhDs to just go to industry (possibly in a non-research position) than it is in a lot of other fields, but I think it's still unrealistic to expect every CS PhD who seeks a tenure-track position to find one.

Actually, I would think it would be easier to get a tenure track professorship as a CS PhD. The number of CS-related grant opportunities is staggering.

Easier than in other fields, yes, but also definitely not so easy that anyone who makes a serious attempt will manage it.