I didn't know this was so popular of a question. I've been asking it for many years. I love it because anyone with expertise in any part of the system should be able to answer it. Are you a networking guru? If so, you should be able to talk a long time about the network bits. Are you a kernel guru? Same. Etc. It also gives me a good idea how broad the interviewee is. It is always amazing to me how many people fail th…
So, everyone fails and you think it is a good question? That doesn't make a lot of sense to me. I can't reasonably answer the question, because I haven't really needed to know it. When I need to know it, I'll learn it, and quickly. How is that question a good measure of me if you are not hiring me to architect a router or something where it pertains? I could ask you questions in my domain that you'd be hopeless at an…
I really struggle to believe that a competent software developer would be unable to answer this question with some degree of accuracy. It's not like it's a networking question - it's fantastically open-ended and covers everything from hardware, operating systems, networking, GUIs... and that's useful flexibility. On top of that, it's useful to help judge communication skills - engineers must be able to clearly express ideas, understand the audience that they're communicating with, and be able to discuss and reason with other engineers.
I would not hire an engineer who was not able to answer this question.