Demosthenes49, “twice as many law graduates as law jobs” does not really affect HYS.
The link most certainly does support my claim that there are “superstars who turn down other options in order to remain at Harvard in teaching roles.” Look at some of the fellowships available:
Law Teaching
Berkman Center for Internet and Society Fellowships
Byse Fellowships (for HLS S.J.D. students)
Climenko Fellowships in the First-Year Legal Research and Writing Program
Raoul Berger-Mark DeWolfe Howe Legal History Fellowship
Reginald F. Lewis Fellowship for Law Teaching
Summer Academic Fellowship Program (for current HLS students only)
Here’s a description of one of them, the Reginald F. Lewis Fellowship for Law Teaching: http://www.law.harvard.edu/academics/fellowships/the-reginald-f.-lewis-fellowships-for-law-teaching.html
Applications were due in January (meaning that it’s not just a filler handed out for an unemployed person) and it has a rigorous program.
Also, you can look at the Harvard Law School faculty pages. Those who teach legal-theme classes at Harvard College as well all have TAs from the Law School. Those TA jobs are handed out only to the best and the brightest at the Law School, and the best of them are encouraged to stick around as a TA for another year post-graduation before becoming a professor somewhere good. Anyone who worked as a TA for Morton Horwitz, a legend in US legal history (http://hls.harvard.edu/faculty/directory/10405/Horwitz), who taught a class on US legal history at Harvard College even though he was based at HLS, could write a ticket anywhere, for example.