As a thumb rule, I'm happy to put 4x more effort than the company. If they interview me for 1 hour, I spend 4 hours doing the take-home. Anything more feels like exploitation.
You are absolutely right into setting your own rules as well, those haven't overlapped.
Also, not all companies try to maximize for "top tier developer", it seems they are maximizing for "top motivated developer", which does not seem stupid either.
This is an open source database company, obviously the best candidates are contributors to the project first.
Picky ivy league graduate that farms leetcode and system design question is very very low in the ranking of what such companies should look for.
The people I have met with the lowest tolerance for this stuff are the ones who actually produce the most impactful work. Partly because they don't do work that has no impact on their lives.
Edit: Obviously, they can do whatever they want, but that doesn't mean that it's a good sign from outside.
HR gets paid to talk to candidates. I don't get paid to apply. The initial screening call is what allows a company to gauge the relevancy of a candidate. Let him speak about some of the topics and see how in-depth they go. Either the HR is familiar enough with the tech to understand proficiency (think a student listening to a maths professor) or they let a TL have a short conversation. I've overheard unqualified HR do their jobs badly, too; They laughed at picking them by looks and "feels". But, that's out of scope here.
A large company has millions to invest in different areas. Intrinsically, it has a much larger margin of error. You accidentally overprovisioned some resources and cost the company 10k? Tis but a scratch. You POC some personal project and accidentally get billed 10k? That is not the same.
A company can spend money on hiring. It is expected to. A private person can't spend money on applying to jobs. It isn't expected.
It's interesting to see how the shift goes from the self to the company [and to the country]. A little bit of communist propaganda goes a long way, eh, comrade NPC?
When someone calls others "npc", I understand that they are complete psychopaths that are somehow capable of thinking that the other people don't live the full human experience as they do.
From your perspective, you're filling out an application, maybe writing a cover letter, but on the other side, there are 100+ applications like yours. Not all of them are qualified, CVs are not a trustable source anyway.
That's why companies add tests to filter first, then interview later.