This reads like RIP Budweiser, only Johnny Walker Blue from now on. Of course a week of structured side by side time is better than a few hours. Also - what the hell is wrong with a system design question?

Yes, a process that is 10x as expensive may be 10x better.

And reading the original Steve Yegge post - he seems to recommend a sort of social reputation score. Which means that your interview failures can now follow you?