Pretty much all CS programs have exams where you must write code with pen and paper. It's a bit of a challenge to try and come up with an alternative way of having individual assessment of coding skill (with no help from the Internet or ways to cheat).

Lots of people complain about it but I never had an issue with it. Two reasons why: 1) typically the amount of code is really small and the exercises are very easy anyway 2) I've been writing (pseudo) code on pen and paper since I was a kid (and I still do!) and I find that to be a valuable tool.

Ditto for whiteboard coding in interviews, as long as we're talking about small toy problems, I have no problems doing it on the board.

A good skill to have come whiteboard interview time.