Earlier quoted context omitted.
Thank you, this was almost exactly what I was going to respond with. My only addition: "Alternatively, we can write/review some code on a whiteboard."
It's well documented that whiteboard exercises are terrible for evaluating candidates. A lot of people, developers especially, don't perform well under pressure (stress reduces cognitive ability). Not only that, but you will also alienate a great many experienced candidates. If you are OK with all that, fine I guess. But I thought it was widely agreed upon that the software industry needs better hiring practices.
I understand that some people get stage fright, but I'm not expecting them to come up with a perfect solution; I'm only trying to get an idea of how they think (and whether or not they can actually write code). If they can't do this sort of thing in front of a small group then how are they going to perform in group meetings? Are they just going to sit quietly in the corner the entire time?
I can't have that either, and I need some sort of measuring stick. I'd rather lose a good candidate than take on a bad one.