My frustration isn't exactly like yours (my time is probably a lot less valuable). I feel that the questions are all geared at puzzle solvers.
If you're a puzzle solver, you love answers. You love digging into the details. You love finding out the basic components of a system. I think these are the people who excel in academics.
Almost every other intern I met once I got to the bay area was a puzzle solver. They were also competitive and had amazing grades. And these people LOVED algo questions. Over lunch, they could go through half a dozen questions.
I slipped through the cracks I guess. I'm bored by puzzles, have awful grades (and in a worse program), and not so competitive. What I do enjoy, however, is building up. I like modeling and being about to think at greater and greater levels of abstraction to solve problems that aren't puzzles, but instead open ended questions.
Anyway, I think both of these types of people have a place is software, and only one is given attention