Sure it does. Collaborative software development is a low-pass filter, not a high-pass one. If you put 100 people on a team and tell them to develop a product, the product quality will track the least controversial ideas, not the best. With more people, the set of uncontroversial ideas gets progressively smaller, and trends toward the features that nobody really cares about because those are the only ones that don't provoke strong emotional reactions. The simple fact that you added more people is what made the product shitty, not that the people were incompetent or poorly-skilled.
I've been in design discussions where we've had a room full of incredibly accomplished people, folks who've written major open-source projects or launched consumer products with billions of users, and the eventual decision was more brain-dead than anything that any one individual in that room could've come up with. And everybody knew it too, but you don't want to piss off highly intelligent and accomplished people, so you make the decision that everyone can kinda live with rather than the one that will wow users.
The lesson here should be "Don't hire unless you absolutely need to", not "Google hires stupid people."