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If he is going to trash the status quo, he should offer a plausible alternative.
I have dedicated much of my HR career in trying to match people to jobs effectively. I've used sophisticated processes and also hired on gut feel. It seems that both were equally reliable or equally unreliable for making good hires.
In some strange way, I am relieved to hear the news. It doesn't relieve me of my responsibility to hire the best, however. Hopefully, my batting average has been high with the use of the tools and my intuition.
Measures matter, but it's always good to step back and make sure we don't do them just because. Many measures are just dead wrong. For example, GPA and success as a lawyer have no correlation whatsoever. Desire, interest, real world practicality, those matter.
One of the best hiring managers I know would be as likely to hire an MBA as an archeologist. He was looking for smart people with varied interests. I like people who don't follow rules to work at our shop, and I don't think that would come on a standard test.
You're right, getting the best people is right. But I do think psych exams is just a waste of time. I'd be interested to hear something different, but any that I've had experience with are great at providing all kinds of "data" and very little in the way of results. Have you seen them work? And can you claim reliable correlations?