> or in those rare times when the hiring market favors candidates

Which is... right now. I think this strategy could absolutely pay off. And your objection seems to be that if you say these things then the company isn't going to hire you - that's the point. It isn't a negotiation tactic, it's "I am taking this interview procedure as a reflection of the company as a whole and that gives me sincere reservations as to whether I'll be a good fit".

No, I wouldn't recommend this when you're fresh out of college. But many experienced developers absolutely do not know their worth - you shouldn't have to go through that crap when your resume clearly states you are capable.