> I don't get why no one seems to consider the possibility that these sorts of interviews actually do get high quality engineers in the door.
That's is debatable to say the least. I'm both a hiring manager and on the market for a new job (so I am still solving leetcode problems in my spare time). After 3 years of hiring based on leetcode for technical competency, I can say that the quality of engineers is a hit-or-miss. I've had people writing brilliant solutions to hard leetcode problems crash and burn when writing production code. Currently on my team, the most technical debt was written by someone who completely aced the leetcode stage and was pip-ed out a couple of months back. We even have an inside joke to look both ways before changing X's code. He easily landed a job at a unicorn and I'm really glad he's their problem now.
I really don't believe there is a strong correlation between competitive programming chops and being a competent engineer in a team environment.
We are currently changing our interview practices to ask questions which touch on more practical issues (like multi-threading, review a piece of code, change a piece of code, make a unit test pass, instrument this with metrics, etc..) because what I personally identified as a better signal was competency in specific types of leetcode problems such as LRU caches, O(1) data structures, iterators for common data structures, etc..