Absolutely. Asking a person to produce correct code with just a whiteboard/pen/notepad is like asking a surgeon to do with just a kitchen knife. An intelligent code-completing&checking IDE, a debugger and the Internet should be considered parts of a developer's body nowadays, restricting usage of these makes just as much sense as restricting usage of glasses for reading or requiring people to get to the office without using personal/public transport vehicles.
If an interviewer scolds you for writing whiteboard code that will cause a compiler syntax error, red flag, time to bail out. This is now how they are supposed to be done.
Properly done I might go against the grain saying I prefer whiteboarding tests over take-home tests. With whiteboarding, both parties are at least with equal time investment and a higher level of transparency. And once the interview is done, it is done. No thinking about how to schedule your next few days around finishing unpaid work for a company that you may have a chance with.