Developers suck at judging their own performance in interviews

In general the interview process for hiring develops is terrible. The usual flow looks like this:

1. Non technical recruiter screens resumes for keywords or similar job titles for previous jobs.

2. Basic CS questions that can be memorized (see cracking the coding interview book) are asked as a screener question.

3. Some more involved question, or short take home project is assigned that more often than not does not reflect what a developer would actually most often do in the real world.

4. Developers decide whether the candidate is a good "cultural fit"

What ends up happening is that developers need to maintain two skill sets: the actual day-to-day development skills, and the interview process skills.

I'm not sure what the fix is for the hiring process. How do other successful, mature industries handle this process?