To add to your point of these questions becoming the only way to interview a candidate, I used to work at a web agency, and I found a lot of candidates who were very good at answering all of the algorithm questions that the owner of the company asked. Then I would follow up with a very short and easy written test with 5 technical questions to gauge the candidates understanding of JavaScript, ASP.Net, PHP, SQL, and HTML/CSS, nearly all of them failed to even explain how they would start, let alone actually ANSWER the questions.
The inverse relation of Theoretical and Practical knowledge always blew my mind.
Using the same set of interview questions that every other company does really kills your ability to judge a candidate effectively, because they all know the answers.