When i was at uni they described the intention as:
40% for book learning (memorisation)
30% for variations on things you've seen before
30% for applying concepts in new ways, requiring "deeper" understanding
From that perspective, if I want good students I don't care if you can answer a standard question quickly and accurately, I care whether you can reason something about a harder question given time to think.
I see. That is tight. But that simply tests thinking under time pressure. Fewer problems with higher difficulty level may help here (like the Olympiads or Putnam but both being extreme examples). But the challenge would then be to come up with large number of such problems.