> Nobody likes whiteboarding
That's why companies should allow laptops.
> Take-home assignments are unpaid work
True, they could be optional. You may not get the job if you don't do it. Honestly, if you can't spend one or two hours on a take home assignment during a 7 day period, you certainly have different problems than applying at this company.
> Pair programming during interviews makes people uncomfortable
I agree, pair programming during an interview is mostly a no go. Not because of the issues you mentioned but because most interviewers are totally unqualified to do this properly (unfortunately, most interviewers are also unqualified in general to conduct interviews). It takes a lot of skill to conduct pair programming interviews and draw the correct conclusions.
> People who currently have good jobs are unwilling to consider contract-to-hire
In US, there is practically no difference between those three. You can be fired any day anyway. But yes, if you have a secure job that is good, the bar for switching is high, but so what? Why even switch? It's your choice then... Luxury problem!
> Credentials, including graduate degrees, are no guarantee that someone is a good engineer
I would go as far as saying your credentials and degrees are horrendously irrelevant in predicting your skills as an engineer. The only thing you might be able to conclude is that a GPA 4 M.I.T. graduate probably can pick up missing knowledge quickly, as opposed to a no degree dish washer who learned "how to code" in a 6 week bootcamp.
On that note I have experienced first hand, Berkeley and Georgia Tech CS majors, who were absolutely incompetent on the job and just had no idea what the hell they were doing, with little improvement in sight...