My experience is that companies are "desperate" in the sense that they're willing to invite you to lavish parties and fill you with free alcohol to get you to work there. But as soon as you start talking contracting, telecommute, or anything other than "sit at this desk for 60-hour weeks trying to get permission to fix an awful codebase with terrible equipment," suddenly they're not interested.
Story time: one of the best, most experienced local developers I know interviewed at a name-brand tech firm who is covered once a week on HN. Twelve separate times, they told him "We'll let you know today" as to whether or not he was hired. Several weeks later he found out third-hand he was the fall-back guy for some other non-qualified person they ended up hiring instead. He's told me horror stories about their code base that would make your hair stand up. This company keeps inviting me to parties about once a month.
There is a developer shortage in Austin, but the article blows it out of proportion. In reality the reason these few companies are "desperate" has to do with developers who want respect as human beings, autonomy to get things done, reasonable hours, a company that understands the need for technical excellence and not "put out fires" mentality, etc. If you do those things it's not that difficult to hire...