my reaction is that what I do on my own time is my business and has absolutely no bearing on anything else, and that asking about it is borderline invasion of privacy
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I'm not seeing the invasion of privacy ... its a relevant question that is strictly limited to your development/engineering experience ... what you learn on side projects has bearing on your knowledge as a developer, if you don't want to reveal that, great, but most people that do have side projects have no reservations talking about it when prompted (unless its top secret or illegal)>
I'm sure a good interviewer can find a way establish your proficiency based on your work experience etc
Maybe I work on stuff I don't want to talk about all night long, or maybe I don't work on anything at all when I get home because what I'm doing at work fulfills me
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Great. Doesn't change the fact that its enough of a trend among good developers to be used in an interview, to help you zero in on the really good guys.