Earlier quoted context omitted.
Interviews go both ways ... I don't think they lost out on anything they wanted.
That is what people miss about interviews. Often when you interview you don't have reasonable leads on any other job and so you don't feel like there is a choice since you likely need a job (unemployment rarely pays as well as a job). However interviews are not only about the company deciding if they will hire you, they are also about do you want to work there and convincing you to take the job if one is offered. So…
I feel like in practice, unless you're an established, senior professional in a high-paying, in-demand field with a network to rely on, this would go something like:
> What is it really like to work there. How much notice do you need to give before taking vacation? Do they really give pay raises? How often do they lay people off? What is the dress code? Do they let you take time for your kids school activities?
"Candidate ABC seems too demanding and picky, constantly inquiring about irrelevant specifics. They would be a bad fit for our company culture. I advise going with candidate XYZ instead."