Given the harm a bad coder can do to a codebase and the morale of a team, it is better to not hire a good coder than hire a bad one.
When you spend an entire interview doing college computer science quiz type questions, and none of it on process, code review, coding style, development philosophy, approach to testing, etc.... you end up selecting for people who are good test-takers, but may not be any good at writing maintainable code. Or debugging. Or troubleshooting production issues. etc... etc...