Yeah, in some ways I like "system design" type questions, because at least it's pretty creative and more like what I do at work than writing some little algorithm with a custom data structure.
But on the other hand, it's also not a very strong signal for my years of experience working on and designing portions of systems. I've never actually done "design a system from scratch", because every system that is big and complex evolved from some smaller and less complex system.
So the kinds of questions that come up in these system design interviews are best answered in real life with "I dunno, I'd pick something simple and refactor it later if it becomes a bottleneck".
"What kind of database would you choose for this?" "Whatever we're already using in production for other things." "How would you model this data?" "As simply as possible, so that we can get it out fast and start learning things."
But these are not interesting answers in these interviews. I have usually found myself saying "well, in real life, I would advocate for simplicity and iteration, but for the purposes of this interview, I'm happy to discuss potential trade-offs in technology selection, architecture, and data modeling".
But I think it's easier to study up on the "right" answers to the architecture and modeling questions, without spending a lot of time learning how to start simple and when to evolve toward complexity, etc.