> It's more a measure of willingness to jump through hoops than your competence.

I'd say it's more a measure of how well you can learn an arbitrary skill. They could change it to solving Sudoku puzzles, grading SAT essays, or wood carving and most of the same people who do well in leetcode interviews would pick up those skills and ace the interviews.

But you don't need arbitrary skills, you need solid development skills to do the job. So they're always going to miss out on people who aren't good at learning arbitrary skills but already have solid development skills. But many big companies seem alright with that tradeoff.