> If you think they're good, why not do a paid day of work then?

not many people could take the time away from their current job, so you'd be automatically filtering out people who are currently employed (which, i would imagine, is a signal that they're already sufficiently good).

So only those who could take the time can come to this style of interview, and it introduces a systemic bias.

I never quite got this argument. If someone isn't willing to make time to work on a PAID project, it means they don't want the job bad enough. Take a day of vacation geez...

Most people looking for a new job apply for several before finding a good fit. If this became common practice, it wouldn't be taking a day of vacation, but potentially all of them. Not really practical.