I have a different view on this than probably a lot of people.
In my book, the simple act of asking you to draw something out on a whiteboard is not bad. What I feel is kinda funny is when a company goes down the textbook list of basic programming questions and judges a candidate off of that. The reason being, this is not an effective measure of skills and/or passion for any field. IMO, a more effective approach is one highlighted by Casey Muratori of Molly Rocket games in this video.
The video is quite long but it's definitely worth a watch if you are curious and/or are preparing for any type of programming interview. For those who don't know, Casey created Granny 3D when he worked at RAD game tools, a developer's tool used in over 3,700 big game titles, including Age of Empires, The Sims 3, Halo, and many others.
That all said, a couple more things: