I am aware of hiring decisions between several candidates that hinged on their side projects (or lack thereof).
some workers like to spend time coding off-clock: that's fine.
some employers prefer those workers: that's fine too.
I'm not interested in being one of those workers, and quite happy to avoid those employers. I have no trouble finding workplaces that respect my time.
I think what we want to limit is employers pressuring people into side-projects as a form of unpaid overtime. Other than that, I'm not sure if I see the problem here - but I guess I'm a part of it too.