> where people were trying to coast in on the reputation of their university or by getting an “internship” from their dad’s friend’s company.

This absolutely still happens though. Those people will just get "fast tracked" through the process and allowed to skip steps. If there is even an interview at all. Nepotism is still alive and well even in software.

Edit: Oh, or they will get hired as consultants / contractors at a high rate and get to add your company's name to their list of happy clients