That doesn't indict the fact that's the exception and that software programming almost never looks like that.
The real problem is that take home problems are trivially gameable - it's obvious to someone unscrupulous who's not a well-seasoned coder, that it would be well worth paying someone else to do their take-home-interview-homework. (Sure, that would come out eventually, but that's only one of the problems I have with take-home assignments.)
Some places have "open book" interviews, where it's like "here's a laptop, do this thing, and google/stack overflow/devdocs" your way to victory, which is at least better than the older "how much trivia do you remember about this API"-style questions. But I have no idea how to go further and make that unbound by time when an employee is on the other end of the table listening to the interviewee's thought process, if only because it makes it very hard on the interviewer to plan their own time. (Especially considering maker vs manager time.)