This is incredibly true. I once turned 60kLoC of classic ASP in VBScript into about 20kLoC of python/django including templates. And added a bunch of features that would have been impossible on the old code-base. It turned the job from hellish (features were impossible to add) to very nearly boring (there wasn't much to do anymore). So with this newfound freedom I built some machines to automate the data entry and on…
Code reading: In Whiteboard: in ~15-20 min I can get a grasp on how someone takes a vague problem and works toward a solution and how they are to work with. I'm actually less concerned about code, and more about how they handle ambiguity, flesh out requirements, communicate issues, and think holistically without the distraction of a compiler/syntax-highlighter/etc. I think whiteboarding is slightly more about communication than coding and can provide a lot of context in a short amount of time. Of course, not all whiteboarding interviews are equal - I spent plenty of days complaining about certain whiteboarding interviews, and now I'm clearly biased to believe that mine take the good and leave behind [most of] the bad.
Code pairing. Takes ~1hr to understand and modify some piece of code in a meaninful way. (Maybe there are simpler versions - but in an effort to feel more "realistic", I've always focused on changing a requirement to the candidate's code submission). It's more realistic than whiteboarding, but it carries the [real-world] overhead of getting syntax right, finding docs for a specific function, and other surpries that come up (network issues, desktop crashes, editor problems, etc.). I've seen it work well when there are several interviews that focus on very different skills, but inevitbaly after such interview, I've often felt like I had a very narrow view of a candidate.