I've had two memorable interviews where timed coding was part of the interview, and I wowed the management team but did not get a call back due to taking about 10% too long on the coding. This is a good thing, in hindsight, considering the eventual fates of those businesses that hired like that.

It's counter-intuitive not to test for coding at an interview for a developer. But you just can't learn what you need to know, as a hiring manager, from a pass/fail timed test. This greatly informs my hiring process now.