>2. Most standardized tests aren't used in the expectation that the testee's knowledge will matter in the future. Instead, the idea is that people who score higher will be generally more competent at whatever it is you want them to do.

I fail to see how information retention maps to skill in this case. I guess it could be a vague indicator of the amount of practice done, but some folks memorize so easily, it makes this system incredibly easy to game.