As a hiring manager that gives take home tests rather than testing on site, I feel on balance it gives a better idea of what they're capable of than a barrage of on site tests & technical questions. Given the option of spending half a day on site and half a day at home coding, are you saying you'd prefer that over a full day including half a day of whiteboard and programming with people watching what you do?
There isn't a correct answer I guess, nothing will suite everyone.
