[banachtarski1]

I agree - I don't think competitive programming should be used as an interview tactic. That being said, if you look at the rating distribution of TopCoder/Codeforces problems, most interview problems (even at Google) tend to be around the 1500 Elo level. Around the 1900 Elo level and above, I think it's an extremely strong signal for a very talented thinker.

I'd much rather prefer a discussion about a previous project (open source or at work) with pointed questions about the code/design choices, a take home, etc.