Earlier quoted context omitted.
I'll use myself as an example -- I work as a programmer in the Defense industry. I've wanted out for years. So every so often I start sending out resumes and going on interviews. After wasting about half of my vacation time on (multiple) rounds of interviews with each prospective employer (that ultimately lead nowhere -- most often, a potential employer who inexplicably stops communicating with me), I give up. Then,…
"whiteboard hazing" there are two types of whiteboarding questions. The kind that's a perfectly reasonable thing to ask (i've had people ask me to develop some simple system... which I think is reasonable, because i'll do that as part of the job) but then there's the solve x algorithm questions. Which ultimately is an exercise in memorization. At this point I've just accepted that i'll have to do that.
Do I think algorithm questions predict how well you do on a job? No. However I certainly don't think they are just memorization unless you mean memorizing run time of various data structure operations, but that's actually useful to know.