I used to think this too, but as a filter I think it's having the desired effect. From the outside looking in Life at a FAANG seems competitive in nature and they are optimizing for the people willing to push themselves that far to learn something.
The added bonus is all new hires at least know the effects of space/time complexity and how to make space/time trade-offs deeply well. Given they operate at the scale they do, mistakes with those concerns are more likely to have a material impact. Requesting that you know it _now_ and now that you _used_to_ know back in the day seems reasonable.
The upside from the candidates perspective, as ridiculous as leetcode study is, is one set of study applies across multiple companies, so candidates don't have to expend much energy on trying to optimize for how to study for a particular companies interview process.
If that's the way in and you want in, that's just what you have to do. If you aren't prepared to do it, you won't be getting in. If you are prepared to do it, and you do, it seems achievable.