Totally agree. I suck at interviewing and freeze up on the spot. Even on-site coding tests I'm not great at. Give me the time to sit back in my own comfortable environment and I'm confident I can solve 95% coding problems (and reasonably quickly).
I've been involved in a lot of hiring and I always advocate a choice of a couple of fairly in-depth (maybe 4-6 hours) take-home coding problems. I think people should be paid for their time on these as well.