I can see both POVs, and they definitely have merit. In my own interview for my current job, I was very happy to not have to code anything - the team leads who interviewed me already found it obvious that I was extremely smart & knowledgeable despite having less than a year of experience.

Not that I would have minded coding on the fly or answering stupid brainteasers - I grew up figuring those things out. Those leave me with negative impressions of the company though, and may lead me to demand a higher salary to accept a position.