Nope. Not even close to what I was saying. In fact, I repeatedly said that I am NOT saying that inexperience people are better/smarter. I'm not sure how you got to that, other than pure determination to believe I was saying that.
This is pretty simple.
Experience makes someone a better software engineer. Smartness also makes someone a better software engineer.
Some experienced people are smart. Some are not. Some inexperienced people are smart. Some are not.
All else being equal, I'd prefer to hire experienced over inexperienced, and smart over dumb. But, sometimes, all else isn't equal.
Given two candidates (P = smart but inexperienced vs Q = dumb but experienced), who would you rather hire?
I, personally, would rather hire P. I can train P and turn them into a pretty good software engineer -- and P will only get better with time.
A process that is a "build this project in 3 hours" test will favor Q. If you prefer Q over P, then that's a great process to have.
If you prefer P over Q, then this probably isn't the right process for you. You might do better with the whiteboard coding/algorithms process -- or some mix of different things.
And, you know, that's okay. All interview processes are flawed. A company should pick one that is the least flawed for their situation, be aware of the weaknesses of their process, and do what they can to mitigate it.
Tech companies are generally aware that one of the weaknesses of the algorithm-focus is that good people sometimes do poorly do to lack of preparation, and that's why they encourage preparation.