I'd like to see a split test on whether it's better to set the bar low like they're doing and immediately disinterest a lot of very qualified people or to set the bar very high and intimidate the marginally qualified or unqualified people.
I doubt qualified people are as disinterested as you think. Some people have knee-jerk reactions to job descriptions like this but I think most do not.
Honestly, 3 years of web dev plus system administration for what looks like a junior-ish position in a small but busy and high-profile shop is not outrageous. If I was actively looking for work and willing to relocate I would contact them to get more details before writing it off.
