At the risk of repeating myself what I've said elsewhere on the page:

This method of interviewing has been around ever since, and is going to be around for the foreseeable future. Nobody loves it, including the interviewers, but there just isn't a better way to do it at any sort of scale. Especially when there are much bigger problems to solve when you're running a business. And a lot of other reasons.

It's best to take the bull by the horns. I run http://InterviewKickstart.com, which is a bootcamp for preparing for such technical interviews. We do almost exactly what is in the blog post. It works. Spectacularly well.