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1) I'm not convinced about judging all the developers you hire on with the same criteria - I think you just end up with a clone army

2) I'm not convinced about hiring someone based on their ability to bang a working algo out in 30 minutes

If you are running large teams that will be closely managed using a methodology then this probably works.

I don't think it works for the kind of 'thinkers' you need to build the kind of apps required by YC type startups.

To build big, innovative apps with a single person or small team you need people who don't necessarily have the skill/focus to crank something out in 30 minutes - but can, over weeks and months, think through a complex architecture and bring it to life.

I often look at interview questions and think I would never get the job - but I'm exactly the type of person you need to build an app.