Grads have written software.

If a grad has written no software, or has no capacity to talk software development with you, then the interview is over.

There's no rule saying you need to hire new grads. I'd even suggest that if you care about hiring "the best engineers", hiring new grads is just idiotic.

One of the counter-points of original question is that it is hostile to people with experience, aka didn’t do much also since uni, now you’re hostile against new grads.