and
// Once you've buffed up, you're prepared for most major tech interviews.
and
// has poor predictive power.
If "acquiring skill X" is broadly valuable (as you're saying in this case) then your ability to work on acquiring it is predictive of your success.
It's not predictive of the traits that mark a successful IC in my experience. I'm talking about areas like project planning, professionalism, large-scale system design, personal ownership, meticulousness, etc. Curiosity. Some of those might tangentially be covered by leetcode but I guarantee you important stuff isn't.
Everyone I've seen to fail, either via PIP or otherwise, has cracked these interviews. I've seen many fail over the years. Even worse, I've seen many whom I know would be strong performers, wash out because they got the wrong DP problem that day. Where's the benefit in a regime like this? The company loses and good candidates lose, too.
It's not like there aren't benefits to this process. Once you've buffed up, you're prepared for most major tech interviews. Common formats have their advantages.
That said, this format is just too expensive, and has poor predictive power.