Even at the companies (both big and small) that utilize this method for interviewing/hiring, generally aren't having their engineers work on these types of prob

Even at the companies (both big and small) that utilize this method for interviewing/hiring, generally aren't having their engineers work on these types of problems day-to-day. You utilize tools to solve business or technology issues and advance the company, it's much more satisfying than a puzzle (for those who don't like puzzles). If you'd like to solve real business challenges, practice and get good at this kind of puzzle, algorithmic interviews, decomposing technical problems. Approach them in the spirit they are intended: to showcase your skill. Get past the interviews and work on real problems. Then when you're in a position to influence how your company hires, switch to a interview style that works for you. I prefer 1:1 real-world pair coding exercises on a computer with Google and I specifically test for the ability to look things up on SO.