It seems like we're mostly on the same page, just approaching it from different directions. Maybe I've just gotten unlucky in my interview experiences at startups/establish Bay Area "coding question"-focused shops. :\
I won't lie. Interviewing is tough. I've been involved with some bad interviews from both sides. I wish there was a better way, but I'm not convinced that any of the alternatives typically proposed are actually better.
I gave some interviews when I was at Yahoo that I recognize in retrospect were pretty terrible. Questions with clever/trick answers, trendy topics, etc. The only thing I never did was the pure brain teasers (a fox, chicken, and farmer need to cross a river...). I try to do better now. :\