Great, almost exactly what I think and what my experience tells me.
The fundamental problem is that the skills required to pass today’s industry-standard software interview are not the skills required to be a good software developer.
and a very good advice that is completely true:
don’t interview anyone who hasn’t accomplished anything. Ever.
For a coder that is the most important thing. I had completed dozens of private code projects as I graduated. And I still consider this very important on any other coder. If you don't write at least some code in your spare time you just never gonna be a good coder. Experience for a coder is the most important thing. People which just graduated and never wrote more than a few small sample applications
The startups I've worked with so far did a fairly good job there. I did apply to a bigger company once and got a email back with something in the direction of 30 questions. That was awful and had a lot of stupid useless stuff in it. I did fill it out and send it back, but my view of the company was way down from before. My motivation to work there was limited after that ..