If you've ever read a customer review on Dell's, Macy's, Costco's, or Home Depot's websites, you've used an Austin startup product - BazaarVoice. If you've recently booked a vacation rental, you've almost certainly used one of HomeAway's properties (they're in the middle of consolidating the entire industry). Maybe you've looked for a job via Indeed.com? Use Gowalla instead of Foursquare (Gowalla relocated from Dallas)?

The startups are there; they are far and few now but rapidly increasing. I fully agree with you on the disconnect between academia and the startup community though - it's frustrating just how hard it is for Austin startups to hire UT talent.