Yeah I mean.. I have nearly hired people before who turned out to be scammers, no coding skills at all. I need some kind of signal before turning off the recruiting pipeline, emailing a bunch of people "no thanks," and making a commitment. Sometimes strong referrals work but that might unfairly advantage some, can be gamed, and doesn't work at all for most junior devs without a work history. Shoot, even a strong history elsewhere doesn't mean they will be successful on a different product/platform/team/etc.
Both interviews (live and homework) have downsides, referrals don't work for all and hiring blindly isn't an option. I need some kind of signal, some way to choose one of hundreds. I have successfully used contract to hire before, and while that does lower the anxiety on the interview track, many can't consider that option. And that (again) unfairly advantages some.
I.. don't really know. Just over here trying my best. The market is broken in many ways.