Hiring in many companies ranges from suboptimal to fully broken but in the (macroeconomic) situation when each opening gets lots of candidates it is unlikely to change, unfortunately.
Putting every candidate through rounds of coding tests is actually the least efficient, worst possible response to getting lots of candidates. As the article author said, "It’s already problematic how much company resources are consumed by these interviews."
Lots of rounds and coding tests have two disadvantages - they consume a hiring company resources and they put-off good candidates. And about 2nd problem companies care less now because they still can find good candidates even if some of them will not jump though all hoops. Hiring being a big resource drain is still a problem of course.