There's an Agency here in Australia that (I believe) still insists on Auditioning people at a local venue on a Monday ("industry night").
I don't want to get high and mighty here (because I'm really not!) but at this stage, having played as much as we have, and professionally, in as many venues and situations as we have, I feel vaguely insulted that a Video of us, or one (or all) of our Agent's recommendations won't do to work for this particular Agency.
If it's for a specialised job (a Stage Musical or something similar) I would have no problem with it - but just for a "gig", unless it's truly out of the ordinary - yes I would have a problem with a full blown "audition".
This brings up a point/problem I have with some (only some) Agents - that don't keep up with the current crop of talent or potential performers, and some don't visit new venues or get out to "keep tabs" on existing acts. I really think there is a complacent attitude when it comes to knowing the "up and comers" or new(er) acts AND keeping the quality and standards high for existing, longtime acts at popular venues.