Nope. The main determinants of effectiveness are 2 things:
1) general intelligence
2) conscientiousness (how much effort you put into what you do)
Don't you think asking applied textbook problems is an excellent way to test for both at the same time ?
If you are smart, then what is the problem with going through an algorithm textbook, listening to Youtube explanations when you can't follow and just spending your evenings for 3 weeks or so. Frankly, if you get to chapter 5 out of 20, you've probably seen what you will be asked, so you could easily stop after one week and still easily pass the interview bar.
And if that's too much effort, why should they assume you'll put in effort once you get hired ? They'll be expecting more than one week's worth of effort from you.
Furthermore, Google actually tracks how well it's questions work, how the resulting hires perform. If there really was no correlation there, they'd have changed it (also they've documented it in Laszlo's book, well at this point books)
I bet it would measure even better if they told you a week beforehand that the question would involve some obscure, not super easy but not super difficult algorithm, but one that they can reasonably assume you've never seen before and then asked you to apply it on the interview.