No, it's just moving those 1-2 hours to home instead of at the interview. If you can take time off for an hours-long interview, you have the time to complete that kind of task.
It's asymmetrical though. A reviewer can yea-or-nay my 1-hour assignment in a minute or two. If I'm desperate for work, sure I'll do it. But my position is in high enough demand that I can choose another position that doesn't require me to do homework. If they made some attempt to get to know me, talk to me, and then give me homework, I might bite. But I'm not going to do hours worth of work just for the chance to get a job.
We give these assignments but if we give you one you're already coming in for an interview. What I dislike are the companies who use it as a screen like you describe.
Why would you apply for a job that you don't want? And if you want it, why wouldn't you put at least some effort into getting it?
Effort does not only include writing a cover letter that will be appealing for the company you apply to instead of just forwarding HR your resume. It also includes small activities like these.
You sound more like a spoiled brat, pardon my French, than an artist looking for new opportunities to make a difference.
No he sounds like a skilled artisan who is bringing his unique skill set to the table in an equal trade. He doesn't need to doff his hat and thank the kind Master for this opportunity.
You don't need to change the world, you need to make a difference. Without making a difference, you're no better than the next person of equal skill who wants a bigger TV and a fancy car.
Im good at my job. I solve problems that provide business value. It has nothing to do with art. If you ask me to work for 2 hours, I'm sending you an invoice.