I agree completely. I don't think it should be how many hours you put into a side project or how much time you spend coding something outside of work. It comes down to whether the person really enjoys tinkering with (new) technologies.
It shouldn't matter if you don't code outside of work and it isn't your employers business. But if you do code outside of work, it definitely says a lot about your character and how you regard technology.
My coworker said to me once, "There are those who do technology as a job, and there are those who do it as a passion. We want the latter"