Google (and all the other companies with similar net hiring ratios) use multiple factors to narrow their pre-interview pool; including standard techniques such as resume and phone screening. And then there's in-person interview itself, which involves broader cognitive and personality assessments (apart from in-person LC recitation).
The parent poster was literally saying that LC screening by itself will get you your 99 percent reduction.
Of course, LC-only won't get you there, and all companies with LC use the whole arsenal. But I don't doubt that LC will filter out a very large fraction of applicants (hence the incessant whining on HN). The point is though, with Google-like application volumes, if they drop LC they'll need to substitute it with something that also filters out a very large fraction.
The actual hiring ratio at google is something like 0.2%. They pass over 998 out of 1000 applicants, so no matter what they do, they'll pass over a substantial number of qualified people, and no matter what they do there will be complaints on HN.
The parent poster was literally saying that LC screening by itself will get you your 99 percent reduction.