This is something which has vexed me for ages. I would fail most contemporary software interviews. I personally don't view myself as a great developer but whenever I make comments like "I would fail most contemporary software interviews" people who have worked with me swear that I must be full of it. Perhaps they're just being nice.
I'm pretty sure I'd fail the current software interview at my company, yet I remain gainfully employed there without issue. It's not like I'm just scraping by either, I do well for myself there.
Luckily I enjoy my current job as the thought of going through these interviews and constantly failing miserably frightens the hell out of me. Part of the problem is that I refuse to study for months just so that I can pass some interviews and then promptly forget all of that stuff I just studied. That's just silly.
I don't know what this means for our industry, and it's not like I have any better ideas, not reasonable ones at least.