But what about positions where you will be expected to give presentations, do pair-programming, or mentor junior developers? I think whiteboard interviews can be a measure of your ability to take technical concepts and illustrate/explain them clearly to a team.
I used to really hate whiteboards, but as I grew into positions that required more leadership, I realized that I personally needed to develop better presentation skills. If a potential employer were to test me on that, a whiteboard test wouldn't seem unreasonable to me.
So I have mixed feelings on this. Not every hire needs to be capable of being a teacher or delivering a solid keynote speech.. some positions would be best filled by someone with those skills.