Hey, thanks for the feedback.
The idea is that the candidate knows they can do the best they can within the time limit, and then it's done. No agonizing over whether it's good enough or they should spend another few hours. No imagining how many hours and days other candidates for the same role might be putting in, wondering if they're going to stack up.
I've used this approach with around 100 candidates hiring for various roles in my own business and for clients. The response I've gotten from candidates has been overwhelmingly positive.
The problem I have with the traditional "don't spend more than about X time" approach is that it's not a level playing field. The responses to a challenge exist in relative terms, not absolute. It doesn't matter whether your response was great or not. It matters whether your response was in the top 5 of all the other candidates responding. It follows that you probably need to spend at least as much time, if not more, than all the other applicants for the role. How much time the other candidates _might_ be spending is basically unbounded, leading candidates to spend vastly too much time working on a challenge and then lying about it.
If the candidate screws up a timed challenge that's also totally okay. It'll be a great conversation to have in the follow-up interview. "I started down this road, but if I was doing it again I'd do X, Y and Z because of A, B and C."
Incidentally, I'd suggest that half a day is way too long. Especially if that half a day isn't actually enforced. When I'm hiring I usually set challenges of about 40 minutes, an hour and a half max. I'm not looking for a product that's ready to ship to production. I'm after a sense of whether the candidate can actually interpret a problem then string some code together, and something meaningful we can discuss in the next interview.