[arghbleargh]

While you are correct in pointing out that these contests only test a relatively narrow subset of the skills needed for good programming, I don't think it would be correct to say it's based on "rote learning". There can be some amount of pattern-matching, but it's not as if you can just read the solutions to 100 problems and expect to do well.

Also, I know for a fact that many (but not all) people who were good at these contests are also good all-around programmers. (In fact, you probably do better at these contests by writing more readable code, even accounting for the time cost. But some people can get by with messy code as well.)