This really is the best case, but as you note it was 8 students so quite manageable.
It requires a little skill on the part of the examiner, but you can quickly find out how much material the student knows with much higher accuracy than other exam formats, in my opinion.
One of the skills needed is to be able to make it conversational-feeling and reduce the anxiety of students. You can often tell when a student mostly knows what is going on but has misstated or misremembered something, and guide them around the place they got stuck.