Where I work we have a "programming test". You get a simple problem, two hours, your own laptop (or one provided to you, as you like), full access to the internet, and a room by yourself.

The problems are doable in about 1/2 the time.

Still not quite like a real situation where you bounce ideas off other folks, take a break and go for a walk when you're stuck, etc, but it's closer than the whiteboard coding nonesense.

But I have seen folks coming highly recommended with "architect potential", "top of the heap", etc, who turn out to be 100% useless. And I mean useless as in "it's more work overall when they work on something than if they wouldn't have worked on it in the first place".