Or they could hire a lot of people and quickly fire poor performers. I would class that as "bad at hiring," even though they manage to build a good team with the process.
Sure, but as the linked article emphasizes, these are humans you're talking about. I would never intentionally create a hiring process where we accept a large false-positive rate (I think you meant false positive? As in, we thought he was good, but he wasn't) with the expectation that we'll just fire the poor performers. It's inhumane.
No, I meant the false negative rate. Imagine you have a hiring process. It marks some applicants as "should hire" and some as "shouldn't hire". False negatives are marked "shouldn't hire" when really you should have hired them.
The only way to determine your false negative rate is to hire a bunch of "shouldn't hire"s and see how they work out.
Easy hire, easy fire is inhumane to people who believe that once you get one job somewhere your problems are over. Never-hire-because-we-never-want-to-fire is inhumane to people who interview poorly and do good work -- they're humans too. You can't win them all.