This isn't necessarily a bad thing. But it's not only an IQ test: it also assesses how good is someone at solving problems. The individual shouldn't come with the perfect answer in a limited amount of time but show a good thinking process which put him on the right track to solve the problem.

When doing coding someone can have to solve an issue which doesn't have an answer on stackoverflow, so having problem solving skills is valuable.

Also, being good at algorithmics and data structures enable someone to come up with better solutions which might matter in a particular case.

I think algorithmic questions are better than asking questions about random methods from a particular framework.