And now I see this. Here is a story for all engineers and hobbyist:
Please dont ever use the original Arduino schematic as an example. Or to prove a point. It's bad. It is really bad.The schematic is bad. The layout is bad.
If a circuit works, it doesnt mean it is properly designed.
Do you have an example of this done right then? Wouldn't ATmel chip docs be a better source for application circuitry?
Yes, absolutely. Atmel/Microchip has application notes on their website. And they provide reference designs.
Much better design resource:
https://www.microchip.com/DevelopmentTools/ProductDetails/PartNO/ATMEGA168PB-XMININotice, how they managed to place the bypassing capacitors next to the chip, where they belong? Or how the USB port has ESD protection? Or how they didnt place a bunch of electrolytic capacitors on the board, because why would you, if you have the same value in an MLCC?