No real company has perfect management and a lot of them have poor planning.
> Few people perform well under pressure.
Yes, but majority of jobs have some level of time pressure. That being said, there is such a thing as reasonable deadline.
> With this approach you will hire people able to churn out crappy but "good enough" code in the limited time. Not people who actually can do quality work.
Inability to perform under pressure does not imply high skill without pressure.
> Few people perform well under pressure.
Yes, but majority of jobs have some level of time pressure. That being said, there is such a thing as reasonable deadline.
> With this approach you will hire people able to churn out crappy but "good enough" code in the limited time. Not people who actually can do quality work.
Inability to perform under pressure does not imply high skill without pressure.