I think the fundamental problem exposed in the article is actually not the hiring criteria, but rather that resumes are usually screened by HR departments who have no clue about what a job entails. So the hiring managers have to provide hiring criteria that the HR resume screener can understand. The HR resume screener is not a programmer and has no way to judge the capabilities of programmers. The hiring manager may not be either.

As seen in a Slashdot sig some time ago, "Light travels faster than sound, which is why some people appear bright until you hear them speak." Unfortunately appearances win to those who cannot understand what is being said.