Because it flags you as a mill, uninterested in the applicant and likely a firm that treats development as a commodity. I'd be willing to bet that the 30% who didn't bother to respond to the challenges included some of your best applicants.
You'd never hire an accountant by insisting they prepare a quarterly for you before you ever met them and you wouldn't make prospective truck drivers arbitrarily drive hundreds of miles to an interview.
If you want to screen for the absolute basics of rote capability that's what those various certified professional type credentials are for. But just like your little tests, you'll be pre-screening out the best as well as the worst.