You seem to be confirming that the market for talent isn't competitive - in your view, companies have more applications than they want.
Or maybe you're going for a different point? For the suggestion, my experience is that companies won't consider direct applications either, and in the general case do not ever even list junior positions. (An observation which is not unique to me; see e.g. https://marginalrevolution.com/marginalrevolution/2022/07/fr... )
If you're worried that I'm implicitly slamming interviewing.io for claiming to do something very different than what they actually do, I don't think you've rebutted that - "if people perform well in our interviews, we will introduce them to top-tier companies as long as we think their resume looks good" isn't particularly similar to "if people perform well in our interviews, we will introduce them to top-tier companies, regardless of how they look on paper".
The point I was making is that even though companies don't want to hire juniors through us, they still DO WANT to hire juniors in the absolute. So junior hiring isn't dead.
Here, saying "the market for talent is competitive" clearly means that hirers are competing with each other over potential employees. Deciding that you already have too many potential employees is the opposite of that. It would mean that the market to sell talent is competitive, which isn't what was claimed.
Clarification: Just because companies don't want a 3rd party like us providing them with junior candidates, it doesn't mean they don't want them. Even back in 2017-2019, when the market was booming, we couldn't get employers to take our juniors... because they generally have their own robust pipeline.
So the solution is to go to companies directly, rather than relying on a 3rd party service like ours, which companies tend to use specifically for roles they can't fill on their own.