That's quite different than just making a guy sit and wait for no reason. If there's a scheduling problem, or an emergency comes up, sure. I'd wait. But if the company just has a policy of letting an interviewee sit for hours just to see if he/she will, that's BS. If it works for you, then great. I can pretty much guarantee I'll never work for you.

Sure, because everyone wins when you only hire the desperate and those with no self-esteem. I shudder to think of what level of talent you must have in your organization. Do you motivate with whips as well?