[curiousbiped]

Sure, it sucks for the company that talented people take a look at their process and fire them as employers, but how is that a bad filter for him?

The first impression the company gave him was "we have a bad process" for arguably one of the most important tasks they do - hiring. If they're broken about interviewing, why should he think that the people they do hire are going to be people he wants to work with? Or that any of their other processes are going to be less broken?

My current job (site reliability engineer) gave me a take home programming assignment, and one of the engineers did a code review face to face after I turned it in but before they gave me an offer. The quality of his review was a big factor in me taking the offer - I was impressed that they cared that much about code quality from a non software engineer.