I haven't heard that.
I mean, yeah, its a lot easier if you want to be a PD or work in the DA's office, clearly. Or do JAG.
Nobody wants to do that, so they'll take anybody.
But there are plenty of mid-range or small transactional firms, and they can't all get the valedictorians from Harvard. And its just as hard to be a litigator (say, tort claims) at a big firm.
Heck, I want to start my own place anyway, eventually. I could do real estate law for a while if I really needed to, down in NC.
And plenty of lawyers get hired down there from Campbell and NC Central, which is even lower than where I am.