They did that later, but it is accurate to say that when Mach was first designed, Rick Rashid and others lacked "industry experience". However, they had a lot of practical experience making real systems for academic purposes. The CS departments at U of Rochester and CMU are serious about building stuff.
> To put this discussion into perspective, when it occurred in 1992, [...] many companies that are household names today--Netscape, Yahoo, Excite--simply did not exist.
You may be thinking of Andrew S. Tanenbaum, who created MINIX, and was famously blasted by Linus for not having industry experience.
Mach was written by guys who ended leading Microsoft Reaearch and software development at Apple.