(1) Sure, the problem was somewhat unrealistic/simplified. It's just an interview question; you're not being asked to actually build the damn thing, just sketch how you'd build what the interviewer is asking you to implement.
(2) Making an initial observation about the difficulty of actually assessing frequency of word usage is great and probably better than just talking about implementation techniques, but the interviewee kept coming back to it, even when the interviewer wanted to move on. That is just obnoxious.
When you know what your assumptions about a problem are then it quickly becomes clear what questions you'd have to ask if you were going to actually implement your solution. Having a solid definition of your assumptions also lets you create a good base for building a solution and determining if it is at all feasible.
More than you might imagine.
Think of all the people you've worked with, in whatever capacity, who never question requirements. It seems likely they will hire people of the same sort, not just because they might have a bias toward the "good" employee being subservient, but because someone who questions the requirements to them will inevitably want them to question the requirements to their superior. They've already spent their career up to this point avoiding this, it seems unlikely they'll take some action now that prevents it.
Based on a metric of producing code that fulfills the requirements, they may be as much an A player as the assertive developer down the hall. The thought of including assertiveness in measuring employee performance has never occurred to them. You say to them that only "A" players hire equally capable people, but they respond by saying that they are an "A" player. It is the start of an unreasonable argument.
Perhaps they should hire for assertiveness, but that's a matter of convincing people that their method of analysis is wrong. That doesn't get solved with platitudes; it gets solved by showing that encouraging assertiveness provide more value that the security of the status quo. How to show this, though, is something I am still trying to figure out.
Who wants an employee who never questions the requirements?
I can't think of a better way to end up in project management failure than to start writing a solution to a problem you don't understand.