That's the thing I was struggling with, I can solve many of problems for the avg company – but I don't know how to solve a leetcode problem. I bet there aren't as many companies solving the complex problems on a scale. But if we look from the perspective of the company – maybe it's just an filter to get someone very dedicated and nerdy about programming. Less churn, less questions.
I have a controversial, philosophical explanation why that is: Leet code is useless in the real world, everybody knows it. But one would find that people that are able to sit down and learn something useless and stupid only because their boss asked it makes for better employees. The modern corporate world does not like free thinkers, if not within easily controllable parameters. The solution for the ones that have be…
So I think leetcode interviews get both those groups - the ones you mentioned, who work hard and study (and thus demonstrate good qualities of being employees), _or_ those who are so good at this stuff that leetcode won't even make them sweat.