So offer them the job and provide a path for more responsibility and pay as they prove themselves. I don't see the downside for the company. There's probably a downside for certain middle managers, I guess.

And more particularly, Im probably not looking to pay for one, and Im probably not looking for a senior manager to do intern level work for intern level pay with the expectation of approaching senior management work and pay.

More likely than not, Im looking for an intern who I can pay intern wages, and maybe slightly more as he improves.

The problem with this interpretation is that a lot of these so called "intern-level" jobs are not labeled as such. In fact, many of these opportunities require this so-called intern to have senior level skills based upon the job description and (no joke) seven-part interview spread over several weeks. So if these companies are just looking for interns, why not decide in one simple interview? And the other problem here is that many who apply to be older "interns" who are career changers are also rejected. There is really no way for the hiring company to explain that away as over-qualification.

At least that's my read on the situation. If I were a manager and I could choose between hiring somebody with 10 years experience and fresh college graduate I'd hire the experienced guy for sure (or hire them both). The only reason I can see why you would only hire junior is if your budget is limited (because of course the person with 10 years industry experience will require higher compensation than fresh graduate).