We've gone away from system design interview questions on my team. We ask people to diagram something technical they understand well and the team digs in and asks questions to understand depth and breadth of the candidates understanding. For us it works much better. It's a chance to see how well candidates do in following instructions. It gives you a chance to explore depth and breadth of their knowledge on something…
Assuming you know enough about what they're doing to actually dig in - which, granted, maybe you're only considering interviewing people who are working things you're somewhat familiar with.
Ultimately, I don't see how this is different from a technical design interview - in that you can be susceptible to hiring charlatans, and pass on people who'd rather say they don't know something than try to BS most of it on the spot to sound impressive.
The two people could have the same knowledge. You're more likely to hire the charlatan. Maybe that's what you want :shrug: