Software development in the real world requires many skills: defining, documenting, and approving requirements; designing user interface; designing software; integrating software into existing system; writing software; testing software; debugging software. Writing software is often a small part of the overall project. In my last project, writing code took 1 week out of a 3 month project. Yes, knowing how to write code is important. Focusing on writing code when hiring a software developer may not get the best candidate.