It's certainly not going to turn away quickly. I feel like last summer I saw a bunch of articles how prominent companies were removing degrees and "unrelated" challenges as a way to remove the barriers. But I'm starting to think that trend may not work since there are now so many companies popping up who specialize in teaching and training algorithms and have hiring pipelines as part of their pitch. Who knows but I'm rooting for more practical excercises.

I wish it was like you said, just actual experience. My company had a great interview process. They just gave us a 1 hour pairing React excercise, a case study of reading through their old code, and an algorithm adjacent React excercise (build an interface so users can play the Knights Challenge. don't SOLVE the knight's challenge). I loved it and actually had fun.