The reality is in the middle. Yes, there are companies out there that are horrible in technical interviews. But there are also a lot of self-claimed "superstars" that once hired don't last more than a few weeks in your team. I think most miss the point altogether. We do try to assess the problem-solving aspect during the interview. Often trying to guide candidates into the thought process. We don't even care if the code is broken, as long the approach is correct.