1. In Silicon Valley, people are not bounded by non-compete clauses and can come and go at will. So fungibility is a top priority for any tech company. The only way to do that is to make sure expertise is shared across the team and not monopolized by one or a few old-timers.
2. Eng teams that have mostly old-timers tend to get stale and slow in changes. This is bad for products that need rapid evolution or new ideas to break status quo. New engineers have way more incentives to make changes to prove themselves and collect credits, while old-timers tend to play safe and stay on the side of stability.
3. Bad coders, not new coders, write bad code.
I think it's more that optimizing your hiring process for leetcode savants selects developers who prioritize algorithmic practice over everything else. They also deprioritize character over raw technical skill. But it turns out you need well rounded developers who are able to work with others, communicate well, and have taste. If your hiring process deprioritizes that, don't be surprised when the software produced is shite.
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There's quite a bit of cope involved in this discussion, right? As in "I didn't get hired but at least I, a noble artisan, am not compromising my beautiful style"?