I like seeing interviewees write on a whiteboard because I can see how they're thinking and help them out if I see that they're running into trouble. The point when I give a whiteboard question is to engage interactively with them over the course of ~15 minutes while they solve a problem, not to sit around and be handed a piece of paper at the end.
In addition, communicating with peers via whiteboard is a skill that is actually handy in day-to-day work life; it's not just some artificial interview skill.