A bunch of place do this in some form or another, usually without paying the person, and as part of a series of interviews on an interview day.
I myself don't like homework questions, mostly because I still have to do an onsite, and I only have so much time to do these things. They are usually much longer than 2 hours too. If you communicate upfront that it should only take 2 hours and would remove the need for an all day onsite, then I would definitely be pretty excited. It would probably let you interview a segment of employed engineers who don't want to sacrifice a vacation day to do interviews.
I really like coding exercises as a general interview type although, I feel like it's the most important & real part of an interview.
The paid version doesn't work for people on a visa or are worried about IP assignment agreements, but I like the charity idea brought up by another person to solve this.