Tomato, tomahto. He said "talented" developers and he also said they make offers to 1 in 5 candidates. Based on that, it sounds like they have a steady pool of candidates, so by definition they can find "developers." They reject 80% of them for some reason. Either their hiring process weeds out good candidates, their funnel isn't attracting the right kinds of devs to begin with, or there's an X factor, like they're located in an expensive city with the highest concentration of software companies on the planet (ie: lots of competition for anyone who can even spell fizzbuzz).

Or all three, which was my experience with about a dozen different companies in SF last October. I chose to take the job where I wasn't humiliated during the interview.