I've had and seen this discussion many times, but haven't actually seen that much real world evidence. We don't have people dropping out of our interview process because of our tests, and we use them from all roles from customer support to C-suite roles.

Most developers with some seniority who I speak to believe they are an important part of an effective hiring process for developers, and are humble enough to take one. That said, we don't "insult" them with fizz buzz, we have a test that takes some thinking, and allows the best candidates to show off their skills.