Take home assignments, discussions about work history, problem solving at an architectural level, the list goes on. Programming to algorithms in a live interview setting is about the least realistic way to gauge real job aptitude. Tons of thought leaders write about this, and tons of places implement more rational hiring practices.
On the “pay reasonably well” line, the average new college grad salary is 50K. I’d wager that the vast majority of salaries in the field exceed that. The googles of the world pay way in excess, and they may make you do some stupid dances to get in the door, but that’s not the real world, that’s just one weird part of the world.