Unfortunately in today's climate it might be realistic to say "algorithms are solutions to interview questions" Although I do believe the more tools you have in your toolbox the better. Knowing algorithms can be incredibly helpful. Same goes for design patterns, language design, etc.

It just seems like a fad to drill people with algorithm questions in interviews even if that skill will never be required for the job. I suppose it reveals to a certain degree whether that person has formal CS training or a personal interest in algorithms.