The "reverse-a-linked-list" question is an attempt at "minimal coding question that anyone should be able to do in 15 minutes at a whiteboard". It's an indicator, a mark of the ability to think on your feet and understand the basics -- think of it as the "pons asinorum" of programming. (cf http://en.wikipedia.org/wiki/Pons_asinorum)
If you're going to demand argument-from-authority, I've probably interviewed more than 200 PhD's for various positions over the last 30 years, and a statistically significant number of them were unable to pass a basic set of tests that history has shown to indicate the ability to function in an industrial-style software development environment.
Industry demands a different skill set than research; not better, not worse, just different.