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The flip side of this is that young new developers who can ace the algorithm interviews often end up building a un-manageable mess of a platform while you're feeding them Mountain Dew and catered lunches for the first couple years of your startup. They're patting each other the back for all that "hard work" they're doing coding 18 hours a day, and each day of work puts you in a deeper hole.

You need both. And mis-identifying smart young new engineers who can't think past the next thirty minutes of their coding task can cause just as much of a mess for you as mis-identifying senior engineers who have been faking it for a while...