That's all well and good if you're willing to leave a lot of money on the table. All the companies that hand out half-a-million to a million-dollars/yr total compensation packages operate using similar hiring processes.
That's a lot of money over the span of even a few years to miss out on.
I'm in the UK so that kind of compensation package is completely unheard of. In London it's still feasible to pull in 100k+ without running the gauntlet.
That's a lot of money over the span of even a few years to miss out on.