I don't think the knowledge is useless as much as it's properly abstracted away into core libraries for 99.999% of the real-world use-cases.

Maybe the questions started as "IQ tests" (or a proxy for "fresh out of a Stanford-like CS Program?") but my impression is that now it's a mild (or not) proxy for hazing.

"I suffered through this crap and by God you are going to suffer through it to, or you can't join my little club, and by the way I just make a hundred dollars telling you that."

Edit: clarity & speling