Google has lots of offices outside mountain view.
I imagine that's where most, if not all of Google's development of their products is done though. If you want to work on that, you pretty much have to be there.
I'm not familiar with housing and rent costs in the area, but they say they can't afford anything nearby... how close is "nearby"? Can they afford something 30 minutes away? An hour? How about splitting rent with roommates?
That's the thing - the geography constrains things, and the traffic I imagine is so bad you have to live close anyway. Unless you are one of those that use the Google bus from SF (while leaving at the buttcrack and getting home when it's dark)
