I've seen this and the other extreme, like at my current job. We hire basically anyone, overlooking obvious flaws, then give them a basically blank check for fucking up. I don't know why no one can get the balance right. Don't hire just anyone, but also don't grill the living shit out of the candidate! A single one hour interview is probably enough, but also don't be so forgiving that anything off about the candidate needs to be noticed by everyone on the hiring panel to matter.