I agree with pretty much all of the points I've read here.
As an actor who also works on the casting side of productions, I can say I would never ask for an audition tape from an actor.
When I arrange a casting time slot with an actor who has applied for a role, normally with one to two weeks' notice and having stated they would need to be available on the date the auditions are being held, in the casting breakdown, anyway, I get some replies from actors asking if they can send in a self-tape or do a Skype audition instead, which gives me the impression that they're either lazy, unreliable as they originally said they were available to attend the audition on the pre-arranged date, in the area that was also mentioned in the casting breakdown, or that they're possibly agoraphobic. It gives me no indication of whether they can be punctual or are capable of finding a location when they've been given an address. (It's surprising how many people find this difficult!) A taped audition doesn't show me how an actor interacts with other performers, how well he or she takes direction or what kind of dynamic they will bring to the cast - whether or not they work well with the rest of the team. I receive hundreds of applications every week and still invite most of the applicants to come and audition. A copied and pasted message to each of them with a different appointment time in each, saves a lot of time. Again, it's surprising what small percentage of the hundred or so actually turn up to audition, which is another reason I think it's important to meet an actor in person before casting them - submitting a tape doesn't necessarily mean the actor is serious about wanting to play the role or that they won't crumble with nervousness if anyone is watching them.
I can understand that some producers/directors/casting directors might find it costly to find a venue at which to hold auditions but where there's a will, there's a way and if the production's worth making, it's surely worth hiring a venue to make sure the right actors are cast. If it's organised well enough in advance, there should be something within budget if a venue can't be sought for free.
As an actor, I've been sent scripts for audition tapes which involved at least 3 other actors with whom to interact, sometimes with the character moving to different rooms! Again, this poses the obvious problems! I can understand if it's a last minute thing because an actor has dropped out the day before and I have actually submitted a tape in that situation and been cast. Fortunately, on this occasion, I didn't have to find someone at a moment's notice to read any other parts. Otherwise, I think it's more valuable for a casting director to meet an actor than just watch what they've recorded, on a screen, unaware of how many takes it took them to get it right and unaware of whether they could have played it the way the director imagined it if they could have been in his or her presence, receiving direction.