What's controversial about having a coding problem? I would assume that I'm going to write code for any position I apply to, otherwise I probably wouldn't want to work at that company. Or do the applicants just feel like you're asking an unreasonably difficult question for the amount of time provided?
In HN the general feel I've gotten for interview problems is that people prefer being given a day or two to accomplish a small coding project instead of being given a coding problem on the spot.
I agree with that approach as well, but it's probably because I consider on the spot coding problems to be nerve-wrecking.
I am looking for a new job these days. Fine if the first job you come across is ideal, and the test is OK. But its going to be frustrating if I have to dig into a lot of my personal time doing coding tests, because I want to apply for a few jobs and see what one is best.
I would rather code with the interviewer, and let him know my thought processes, and why I do things the way I do.