If you ever need funding, VC, business loans, etc. you're going to need a resume. The same is true if you are ever considering working with someone that you aren't familiar with. By quickly checking over employment history you can decide, even by how they formatted and laid out their benefits to a past company by wording alone, if they are worth working with.
It's not like you need to be walking around with it on you in case someone asks. Toss that bitch in your public dropbox folder and text someone a link so they can open it on their smart phone.
It's one of the most stupid things in business IMO.
Virtually everyone lies/bigs up what they can do. All that a CV does is gives someone an excuse to blame something other than themselves when it comes to a business decision.
What you've said also just shows the difference between someone who wrote a CV himself, and someone who paid a guy $500 to do his for him.
"Well his CV looked good, how could I know he was gonna be shit?"
If I was giving someone a business loan, I could find out after 30 mins in a room with them if I was ever going to get that money back or not, by asking them to prepare something specific for me before the meeting (that they wouldn't already have prepared), and then fielding them appropriate questions and seeing their reaction to them.
If you're employing someone, ask them questions about what they'll be doing
for you and how they'd tackle common tasks. If they're going to sell, put them in a sales scenario - give them a script to learn before the interview and get them to cold call someone with you in the room, recording the call. If they're going to program, give them a mini programming project to do before the interview.
If someone turns up ill-prepared, they've done your job for them - they're not gonna be any good. If someone has turned up with the programming project done, along with a ton of other bells and whistles they thought were cool, and can explain their way through everything they did and all their design decisions - you've struck gold. You then hire them on a 60 day trial contract and chuck them if somehow they were amazing prior to the hire, but lazy and didn't turn up on monday and friday or whatever.
The whole CV and interview process is one of the most flawed processes in business IMO. All a CV is useful for is filtering people when you've got too many applicants for something.