There are "layers" to the signal you can get from system design interviews:
1. Are they aware of "big concepts", indexing, sharding, queues, scheduling, etc.
2. Are they comfortable actually using and manipulating these abstractions in an academic sense? e.g. new college grads may have never used an index, but can walk me through how we might use one to solve a given problem.
3. Do they have experience operationalizing these concepts? e.g. in DB design questions I love it when candidates are able to walk through a zero downtime migration plan from before and after we add a feature.
4. Related to 3, How do they weight tradeoffs in the system? Do they drill down into product requirements to help inform these tradeoffs?
A system design interview often lets me say: "They're not experienced enough at our scale for me to want to hire them at level X, but I'd hire them at level X-1"
All this said, I do think more companies should try to draw design interview questions directly from their own company experience e.g. imagine we didn't have feature X, how would you add it to the product?