Moving the bit about the scope of the role (jr vs sr vs lead) up to preface the rest of the comment would've toned it down a bit, but even there I disagree with the "taking a risk" part - a senior candidate shouldn't feel like it's risky to offer alternative perspectives. If I got the impression that the hiring manager thought asking questions would likely be a sign of "cannot focus on the task at hand," that's going to set off my own flags a bit.
If you're married to your interview process I'm worried you'd be even more married to your day-to-day process, and I haven't met a perfect company yet, so I consider being overly adherent to process instead of results a warning sign.
Also, as an interviewee, you stand to learn a lot more from that interaction than by rejecting it. Hell, I welcome coding challenges as an opportunity to size up the interviewer's chops!
If the challenge is conducted in a reasonable way, it should feel like any other design/pair programming session you've had at the office, and it can be quite revealing of the tendencies of your potential colleagues.
> Also, as an interviewee, you stand to learn a lot more
> from that interaction than by rejecting it.
If you already learned this is not the company you want to work for there is no need to waste your time playing stupid games just to win stupid prizes.