Real progress in computing is made by former PARC guys at VPRI http://vpri.org/html/writings.php

For example STEPS a full modern computing environment in 20KLOC from the metal up using DSLs and a reimagining of what an OS and the Web means.

Some more Info here: "STEPS 2011 Progress Report (personal computing in 20kLOC)" http://lambda-the-ultimate.org/node/4436

"Alan Kay: How Simply and Understandably Could The "Personal Computing Experience" Be Programmed?" http://vimeo.com/10260548

"Programming and Scaling" http://www.tele-task.de/archive/lecture/overview/5819/

I think most people considered the spin off into Lucent to be the true end of what Bell Labs was. There hasn't effectively been a Bell Labs since 1997.

The true end of Bell Labs was when Lucent started financing customer purchases. They were carrying dot com bubble debt on their books as if it were a solid asset. When the music stopped they had spent their actual assets to the brink of destruction.

I wasn't suggesting that Hinton or anyone else should go to Bell Labs or PARC these days. I was just pointing out that back in the day, nobody would have been disappointed or considered it selling out for a notable figure to leave academia for one of those corporate research centers. For all that Google may aspire to have that kind of reputation for research, they don't have it, yet. So some doubting is allowable. However, I can't think of any other for-profit employer that seems to be as willing and able as Google to build that kind of legacy.

You're arguing a point he's not making.

> So when is the last time that PARC or Bell Labs produced anything of note?

Some—perhaps many—of their alumni now work at Google doing cool things. For example, Ken Thompson and Rob Pike created Go at Google.