I think it's more about continued learning rather than coding outside work. I've worked with developers that would not try to learn anything new beyond what they minimally needed to do their job. They obviously did not code outside work and usually were challenging to work with. I've worked with other developers who were passionate about programming, reading about and trying new things. Although many of these folks also did not code outside work either, they were usually a joy to work with.
And frankly someone who spends all their free time outside work coding is probably not a well-rounded individual and in the long-term I think that makes for a poor employee and co-worker.
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