Sounds like it was actually a perfect question. It made it crystal clear that you and the company didn't see eye to eye on work conditions, and that neither of you would be happy working together.
Of course, the only reason you'd ask such a question in the interview is that you have already decided you don't want the job. But the response can still be illuminating/entertaining. :)
Would probably end the interview right then and there but so worth it to see their reaction.