And then they complain that they can't hire developers.
I don't think these types of interviews are well conceived. Human memory is extremely context dependent and a whiteboard/interview type situation doesn't establish the right context for someone who's accustomed to working alone with a mouse, keyboard and compiler.
Also the more knowledge you have the more difficult it becomes to retrieve that knowledge quickly. So these types of interviews might be good at selecting people who know all about linked lists and binary trees but not much else.