I tend to be on your side of the fence but I have to nitpick your argument:
At these companies, algorithms and the basics are fundamentally important. Because you tend to work on tiny parts of a massive whole, there is no tolerance for cowboy-coding and not following best-practices. IMO the interviews test that you can fall in line and follow the patterns that have been in place for decades.
With regards to using API design as something that is not assessed: System design questions do test this. Also at a company like FB, there's a handful of people designing APIs that are at the top of the pyramid, and even then long-standing conventions around API design at those companies will short-circuit the need for most devs to think about how to organize and name their endpoints.
At my small startup where most of us write an API endpoint, it's important to know. For a UI dev or someone optimizing DB lookups at massive software companies, API design is not something that needs to be tested.
Personally I can admit to feeling frustrated that passing these types of interviews is not my forte. It sucks that I would have to study for weeks to not flop these interviews even though I consider myself a good software engineer. But that doesn't 100% invalidate their interview process.