[jtchang]

I think you nailed it when you mentioned how it is a risk/reward type of play. Senior devs are expensive and if you are willing to gamble there is a chance you can get a really solid dev for way below market price. However you have to be pretty sure that your hiring process is solid. Most companies think they are good at hiring and thus are willing to gamble. The reality is probably that they end up breaking even when they do a mediocre hire, train them for 12-24 months, and they end up finding a new position.