I agree. I think it's great that these guys want to make sure that they get good talent, but yeah, I'd have to
really want to work at a place before I'd put in the time to complete a 10 hour project and provide 10 - 15 referees plus whatever else is also involved. Maybe these guys are awesome to work for and stuff, I'm not really meaning to comment on this.
But from personal experience, I very much agree that it is also the interviewers responsibility to sell their company. I've been in the fortunate position for some years now that I haven't needed a job. When I move, it's from the position of already being employed. Near the end of a job interview there will usually be the point where the interviewers will ask if I have any questions for them. My stock questions always include:
a) What do you like about working here?
b) What do you not like about working here?
I love observing their reaction/response to question b) particularly. :) And I feel asking these kinds of questions sends a clear message to the interviewers that I am not desperate for the job, which puts me in a better bargaining position when it comes time to talk salary etc. Of course, this tactic only works when you really aren't desperate.