I would add this caveat though. If I'm hiring a rookie and I wouldn't trust them to be able to get up to speed and be able to contribute without constant supervision, I would pass. Yes, when someone's just starting out that person-to-person interaction is great, but that can be accomplished with an open Skype/iChat video window and some desktop sharing.
hga hit the nail on the head though - I'm not talking about every hire, I'm talking about bringing someone onto a team that can "hit the ground running" with a "large and evolved codebase" or any other of the number of things tech companies/recruiters talk about.
I recently talked to one fairly established company out of Chicago who was looking for a new lead dev for a re-architect they were doing of their system because their in-house guy botched it. The second I said that moving wasn't high on my list of things to do they were gone. They wanted a "rock star", so long as they set the terms.