Earlier quoted context omitted.
I'm sorry but writing code on a write board, ever, is stupid. I'm happy to write out architectures on a whiteboard, but code, never. Asking someone to write code on a whiteboard is the equivalent to asking a UI designer to chisel wood to demonstrate their ability to develop a web UI. It's rediculous.
I'm sorry but you are incorrect. It is not equivalent. It would make perfect sense to ask UI designer to draft a design on a white board. Same applies to coding. You don't get the point. It's about seeing how the applicant thinks and communicates under pressure. The thinking out aloud part is more important than the white board part. Everyone knows this, except you?
Writing code on a whiteboard is massively obnoxious. The times I've been asked to write code on a whiteboard I've spent more time screwing with the 'interface' than I ever have spent 'thinking'. e.g. trying to keep a line of text level, figuring out how to get brackets to line up, and erasing lines to reorder or writing lines off to the side with an arrow pointing to where it should go. A whiteboard is the worst possible interface for creating strictly structured text.
You aren't testing how the person thinks, your testing how they deal will a situation you've artificially made as awkward as possible, why? What does this actually indicate to you about the applicant?
If you want to quiz a candidate on how they think when coding then hand them a laptop that is already setup to duplicate its display to a projector. Or give them a simple 'take home' project. You'll learn vasty more than having them regurgitate algorithms on a whiteboard.