No one could do what they ask in 3-5 hours. At this point they are not testing your ability, they are testing your commitment.
If that makes them look like assholes, yeah, I can see why someone would feel that way but at least they are clear about their intentions and not insulting anyone's intelligence in the process.
It'd be more useful to know they could execute roughly what I'd expect in 3-5 hours. As in they think quickly, come up with something, get the basics down and are ready to progress or not.
...Of course, if they're doing it at home they could spend 3-5 days on something I'd spend 3-5 hours on and I'd never know...