From the POV of the large tech companies, it's mostly a matter of keeping the interviews short since the questions can be complicated yet fit in under an hour. The top companies are constantly growing, have ~3 year turnover and are flooded with applicants due to their name recognition. Why all the smaller ones copy this approach, I have no idea. The alternatives usually are just as unpalatable: pair programming, a long project, language triva questions, etc. So nothing changes.
>>I'm really skeptical of this claim. Nothing about CS fundamentals prepares you for debugging mobile browser performance, or machine learning, or setting up a sharded database. Maybe the big companies have a reason for asking these questions, but few startups benefit from these types of questions.
To summarize this statement, there's a reason why algos and datastructs is taught only for 1 semester out of 8 in college.
I'm really skeptical of this claim. Nothing about CS fundamentals prepares you for debugging mobile browser performance, or machine learning, or setting up a sharded database. Maybe the big companies have a reason for asking these questions, but few startups benefit from these types of questions.