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Saying that "you're not payed for that" is risky. Yes, you're technically right but when you will be at your new fancy job you may need to do MANY things that you aren't technically being payed to do, so that you can deliver. That IMO is one of the essential skills a senior developer has, not that they can do things a junior developer can't, but that they have a breath of knowledge and skills that make them good junior developers at many things they aren't specialized for and are able to make use of them to get the job done. In that light, picking on "one little thing" such as the interview process using something you may not be used to or like or ever need to do when actually hired (whiteboard coding), seems wrong.

I don't think I understand your point. I was talking about how algorithms interviews map badly to the skills required by the job description. That's only tangentially related to whether you'll have to do things outside the strict job description.

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