Sure, these tests are not an ideal proxy for job performance and indeed they shifted more and more from general intelligence assessment to algorithm coding assessment. Solving the algorithm is only part of the equation though. Writing readable code, explaining your thought process and decisions and communicating well with the interviewer are also vital points of the assessment. Is it a perfect or even good proxy for job performance? I dunno. Do we have a better one within a 40 minute interview? Not really. Past experience is unfortunately also a weak indicator, starting with the question if what's in the CV is an accurate reflection of the truth. There is also an interesting cultural aspect to lying on your CV.
Every approach comes with its own unique set of problems and as long as the position is sought after people will prepare and try to game the system.
The opinion of a recruiter on the matter isn't really the most relevant either. Especially Google should have quite some data on their various approaches and correlation to job performance and seems to use it. E.g. the trick questions were abandoned as they didn't show a correlation to job performance.