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I generally agree that "Aha" questions are bad, but if it's a common problem that people actually re-invent solutions to, it can still be a useful interview question. I personally avoid them, but see a few advantages:

1. If they're not aware of an existing algorithm, it's good to see what they come up with isn't terrible. It's insane the number of times I've seen unbounded time shuffle algorithms in production code. (Repeatedly pick a random element from src, linear scan of dst, and append to dst if not found.)

2. If they know a few famous algorithms, it's much more likely they're aware of the existence of lots of algorithms and are much more likely to Google for the pre-existing algorithm instead of making up something terrible on the spot.

3. A lot of these famous algorithms aren't as difficult to come up with as you'd think. When I first heard of the key schedule biases in RC-4, I thought about it for half an hour and came up with something identical to Fischer-Yates, using the unbalanced Feistel cipher at the core of MD5 (unfortunately, killing the speed advantages of RC4). Years later, when I heard there was a name for the algorithm, I checked Google to see if they had included the back-to-front optimization, and sure enough, what I had come up with was identical to Fischer-Yates.

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