Companies need to understand that not only are they mis-selecting, but they're broadcasting that they're doing so to all the candidates that go through that process.
Approaching candidates with textbook-style algo or data structure questions merely informs that they're going to be working with an educated but overall somewhat junior lot. That's not necessarily always a deal killer, but it's probably not the image that these interviews are hoping to project.
For well-qualified candidates not applying at an industry headliner like AppAmaGooBookSoft, the interview process quickly inverts itself, and it becomes more about the company selling the candidate on their offer than the candidate selling the company on their skillset. Tread carefully.