Disclaimer first: I'm a technical interview coach. We run http://InterviewKickstart.com, which provides structured and intense group programs for early and mid-career software engineers, with the sole purpose of preparing for technical interviews.
In an ideal world, brushing up is all what it should take before going into interviews. Practicing Software Engineers shouldn't need to spend months working through books and courses. Interviewers should be thoughtful enough to interview for the thought process and experience, more than DS and Algos.
Trouble is:
* Many interviewers are not that thoughtful. Even for the most well-meaning ones, it takes a few interviews to truly be good at judging someone in those 30 to 60 minutes. If a candidate is caught into the cross-hairs of an interviewer's learning curve, that candidate is not going to get a fair evaluation. Preparation helps in that situation.
* With the plethora of prep material available for past several years, the bar for interviewing has just moved higher and higher at good companies. If you look at G and F (and some others), there is no way you can get away with just knowing the basics of trees and binary searches. It just takes time.
e.g. If they ask you to merge sorted arrays and you don't know that Heap sort is the best way to do it, you've lost the interview no matter how clear your thought process is. Not because the interviewer is not watchful. But because your competition has solved it with Heap Sort. So even if both of you demonstrated a clear thought process, the other person gets the job, because s/he is more prepared.
* It takes a certain level of life-confidence to just go to an interview with what you know and take the rest head-on. Many people don't have that kind of confidence. Many many engineers are introverts, and to borrow an analogy from sales, they are artists, not hunters. They are equally ambitious as hunters, but their confidence comes from systematic, extensive, honest preparation, and not from experience thinking on the feet. That prep easily takes months, especially when they are doing it part-time.
* Most CS colleges do not actually prepare their students for interviews. Some top ones do, but a large majority of them are not calibrated to churning out students capable of handling interviews at top tech companies. If you went to one of those colleges, and want to try for better companies, you have to prepare explicitly and separately. You have to re-learn CS with a level of specificity, intensity and extensiveness that your school never provided. Yes, you only have to do it once, but that one time, it may take many months.