I ask "algorithmic" questions, normally expressed as a legitimate business case (invent a real world problem, solution is implement some algorithm or use specific data structure). My warm up question typically is a simplistic "find the subset in a given collection that matches this specific criteria" (with a subtle implication of "do it efficiently"). The average coder should be able to solve this type of thing, on their own, in about 10 minutes max, 15 with some feedback on improvements.
Yet, 80% of my candidates take nearly 45 minutes and cannot deliver a workable solution without massive handholding, and I don't even get to my higher order, "real questions". The scenario of a coder who can't solve my warm-up being let loose on code I actively maintain makes my stomach churn.
Until I see the average bar for problem solving go up, I'm going to keep asking basic CS questions in my coding interviews. The job is to solve complex, typically ambiguous problems. Coding is one of the tools - and I want peers who understand the theory behind using those tools.
(I should note, I tend not to pay attention to credentials on a resume. I care more about ability to do the job then past history - though if a candidate has a masters in some field of CS, I might delve into it a bit out of curiosity... they are an expert afterall)