My linear teacher did a good job of this, because you're right that regurgitation isn't useful. He does open-book tests that are focused on doing proofs and conceptual questions that depend on using properties of stuff rather than just juggling numbers. Good CS teachers have done the same; rather than demanding students memorize a half-dozen sorting algorithms, they ask students to use an appropriate sort in a project. In History, students can write papers and give perspectives rather than regurgitating dates. In Econ, students can do modeling projects rather than spouting formulae and facts about AS-AD models.

The caveat to all of these is that they take more work for teachers, so many prefer not to use them.