Actually its good. If you study for months on interview questions to be able to pass the interview, you have "gamed" the system to get in and will likely be washed back out in 1-2 years depending on the mercy if your leadership team. People who spend the night before brushing up on their CS and passing the interview are those that actually pass (and stay and grow) and that is who the company really wants. Its just hard to weed out people who are very determined to game their way through.
...or the people willing to put that much effort into "gaming" the system as you call it are those most likely to put in the effort to succeed and thrive on the job, and are therefore precisely who Google is looking for...