Earlier quoted context omitted.
I personally also prefer take-home projects over being grilled on my ability to solve obscure algorithms problems under pressure. However, this second route also comes with a number of issues. The most annoying of which in my experience is the amount of time investment each interview requires from the candidate. At least in the traditional technical interview, interviewers and candidates tend to be roughly equally in…
not to mention you're asking them to code a (potentially) complex take home project, that could take over an hour, for free. I had a friend of mine who told me her company doesn't use online programming tests (like hacker rank) because she doesn't think legit programmers would bother with positions that required them. Having taken a couple of these on-line automated tests, I don't think I'd take them again. Problems…
An hour, I'm fine with. It's less than what I'd schedule for an interview, and far less than I'd schedule for an in person interview (which might include a flight out). On the other side of it, though, I'd be concerned about cheating. It wouldn't be too hard to hire someone to take the test for me, I'd imagine.