I officially refuse to do these in interviews (along with whiteboard coding) anymore and I'm very upfront about it with hiring managers and recruiters. My reasoning is twofold: (a) I'm generally not great at these kinds of questions so I think it's an unfair disadvantage and (b) I think that my experience, open source contributions, Apress book that my name is on, blog that I often post to, etc. speaks for itself. However, I will
gladly do your take-home assignment. I'd be even more thrilled if we can discuss it during my interview.
It's kind of how in dating people have deal-breakers (e.g. no smokers, no kids, and so on) -- when looking for a job, this is one of mine.
Obviously, the caveat here is huge companies like GOOG, FB, AMZN -- these are big companies that need filters and I completely understand the reasoning behind their process. If I wanted to work there, I would certainly study data structures and algorithms before my interviews.