Now, if I were Very Interested in working at Discourse, Fog Creek, or any similar place of work, rather than just at any place with a nice paycheck, I think the audition is a great idea, and something people would be willing to do.
The GP's main objection is that you only get the best people who want to work at __your__ company enough to spend time on your auditions. There are likely many engineers like them who have a network of job opportunities compelling enough that the added draw of it being Stack Overflow, Discourse, or Fog Creek is not enough to merit the extra work.