I live near the Classic Communities development you mentioned, and they are selling. Relative to the surrounding +/- 50 year old 1200sf ranch homes, the new ones are priced well, and reflect what many buyers are looking for; open floorplans, stainless appliances, high ceilings, etc. Many buyers don't seem to mind small yards, or the cookie cutter feel and lack of landscaping, so new homes sell. They have a great location only a couple of blocks from Castro St. working in their favor as well.
The development on Dana and Calderon is selling as well.
The Google effect you mention is overrated. Goodle is currently trading at $298 a share, a price last seen in October 2005. So any options granted in the last 3 years are under water. That and only about 1000 Google employees live in Mountain View. By contrast, about 2000 live in San Francisco. The people in the sales office at the development you mention said that the vast majority of the buyers were from Mountain View, and are either currently renting, or upgrading from condos or smaller homes.
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Feel free to contact me directly for more information and answers to any other questions you may have.