> Genuine question here: what's the better way?
You tell them what the job is like, what is expected of them, and what the best way to work with you is, then you you ask if that's what they want, and how much it's going to take to get them in the door. That's it.
I wouldn't ask an accountant what the Corrodium 3 Deduction is; I'd tell them I need them to file my taxes, that I need them to own the process and chase whoever they need (even if that's me).
> I think at the core of the problem is that most companies are extremely risk adverse in their hiring and would gladly miss a Jeff Dean type of super-performer in order to reduce their number of bad hires.
I think you're probably right, but if someone lies to you and says they can do a job that they clearly can't, you should fire them.
This should be unusual because getting a new job can be stressful, and nobody wants to put themselves into a job they can't do, so it's rare that you even have to consider this -- but it does happen, and unless you're a sociopath, it's going to make you shy about ever having to go through it again, because you're not going to want to fire anybody. It sucks for you, and it sucks for them, and it sucks for the team who see the revolving door, but nobody benefits from the wrong fit in the long run, so you just need to suck it up and do it.
So be firm, and if it turns out you're firing a lot of people straight in the door, look inwards: you're probably not being honest with them (or perhaps yourself) what the job actually is. Figuring that out instead of some new programming puzzle to torture grads with is going to pay dividends.