I agree that live coding session (with people looking over your shoulder) seems like a counter-productive idea. But selecting people who can stay cool under pressure (with preparation) can be useful when you have those meetings where head honchos ask questions like 'what happened last week?' 'why won't the project be finished at this date?' 'Why do you need another server'...
Also copying Google's interview techniques is a bone-headed idea, as Google receive a lot of highly-qualified applications, so it can afford to reject 99% of applicants.
Biting the hand that feeds IT
