I sincerely think the downsides of a false positive are vastly overrated.

IMHO the real problem is the strict barrier between people who are part of company and non-company. Imagine if we had a more permeable membrane with different departments hiring firing as they see fit (a faster flow than this structured hiring). This would test the candidates on working in the real environment rather than the whole magic and mysticism of made-up work scenarios in interviews.

In fact I wish we had a more libertarian system inside companies with more free markets rather than all the central planning which happens now