I think somehow the world was agreeable enough to drink the Pair-Programming KoolAid. The consulting companies or body shops were happy since they could bill 2x the number of heads for the same amount of time. The "buy-side" of Pair Programming were happy because the KoolAid evidently worked.
Don't get me wrong, I am all in favor of getting my code eye-balled by anybody because I know I don't write perfect code 100% of the times and always open to critique and learning.
Here's a thought experiment. Have two teams A and B. A are pair programmers i.e. |A| = 2*|B|.
Now make team A don't do any unit testing, let them purely rely on pairing to ensure quality.
Enforce team B to do TDD to the best of their efforts.
I would be personally very interested in knowing where the consumer of the code and writers of the code have more confidence on code quality and functional completeness.
Open-plan offices are hip and in Europe maybe even a requirement due to space constraints but I'd personally choose a cubicle over higher pay.