That's not what it means. The agreement was that e.g. recruiters from Apple would not actively attempt to recruit Google employees, i.e. solicit them. They couldn't really prevent a Google employee from applying for a job at Apple though if they're the one to initiate it. (What are they going to do, ask "Do you still work at Google, or did you recently quit? Still there? Sorry we can't interview you in that case."?)
Note - there is no version of "active" or "non active" in the statement. It simply says no hiring ex-Palm/Apple employees. I simply see no reason why this should exist. Why should there be a collusion between company X and Y on a legal platform ?