Sounds like she's still perpetuating the problem: Software Engineering interviews will focus on your standard coding, algorithm, and system design questions... Why are algorithm questions still being asked in a high-pressure environment? Very few people actually work on algorithms once hired and never in my experience has it actually been a good indicator of actual development competency. As DHH states: http://37sign…
See, and I hate questions like that.
If you're going to ask candidates to rate themselves in a technology, don't ask for a number. What I think a 7 is might be different from what you think it is. Just ask the candidate how comfortable they feel in a language. Words work better than numbers.
Also, you should know that many candidates are really scared by someone asking them to rate themselves on a scale from 1 to 10. You're kicking off an interview with a degree of intimidation that's probably unnecessary.
You're right though that many people don't know the fundamentals of the technologies they list. This doesn't mean that they're bad engineers; there's just a lot of confusion around at what point you should list a technology on your resume.
Remember that a lot of companies aren't particularly looking for competency in a particular language. Thus, drilling into the specifics of a technology doesn't assess much for them.