I can totally see this: can you whip up a quick breadbox while we stand here and comment on your every move? You've got to use our toolbox, work with unfamiliar materials and no measurements are allowed. You've got one hour. Oh, and we'll keep throwing in new requirements along the way.
I'm not even trying to touch on the "in person interview" stuff, more of the take home and spend like 8-16hrs on the project type stuff. Which is just crazy. That's more like "build me this table to get the job" type of thing.