As an aside, I can't find any data to support your second point. There seems to be a great deal of talk how companies can't find the engineering talent for bargain bin prices, this is why the H1B visas are so popular.

The biggest issue on this site, imo, is that we can't take our heads out of our asses and admit that the vast majority of programming positions are brain dead easy. You don't need a rigorous test to vet the developer you're hiring to make what is essentially a CRUD app (and your product probably fits that description). It's to the point where companies with deep pockets (think finance) don't even bother hiring solely CS students anymore. You can take any reasonable motivated graduate, put them in training for 2 months and pop out a budding developer for your tech pipeline. One two punch of competent tech worker, and company loyalty all in a super cheap package.