I keep seeing people say that hours don't necessarily equal experience. They keep saying that 1000 hours is better than 1 hour 1000 times. So therefore the time requirement is meaningless.

It's not a time requirement. It's a requirement to have an ATP. The very fact that someone has an ATP means that they dont just have 1500 hours beating up the pattern in a 152.

1500TT
500 Cross Country
100 Night
75 Instrument
250 PIC including:
100 XC PIC
25 hours night PIC
Not to mention a written test and a demanding practical test which is the highest level of certification available from the FAA. It's no guarantee that someone with an ATP wouldn't make mistakes but I would say it's a pretty good bet that having two people with that certification in the cockpit would improve safety.

Full Disclosure: I exceeded those requirements before getting hired but don't have an ATP. If I were looking for a job now I would get it myself.