i don't understand how you and the other guy can make these blanket black and white statements like this. have you guys ever had to hire people based on advertised solicitation only?
contract to hire is mainly done in situations where a new employee can not be vouched for by an existing one, or a large number of new employees must be brought on at once.
the reason why it's so rare among elite silicon valley firms is because everyone knows each other and recruiting is usually a personal process between existing employees and prospective ones. THIS IS NOT HOW IT IS EVERYWHERE.
outside of the echo chamber it's very common and good people can be hired this way.
"I would never do that, so therefore, no other good developer would either. Ever."
I guess I don't get what you're saying. Who does contract to hire where it's good a good deal for someone other than the employer?