Well, you already know my opinion on needle, ball, and airspeed. So I see the value in determining whether someone has an instrument scan and can manage the flight path and energy state of the airplane.
Back in the day I showed up for an interview and they were doing sim evals in the 727 and DC9. They had us climb at 500 fpm, then descend at 500 fpm. Then turn 90 degrees while climbing at 1000 fpm, folllwed by a turn in the other direction descending at 1000 fpm. Then they vectored us for an ILS to minimums, hand flown, no flight director.
Tough ride in an airplane you've never flown, but you could see if they had a scan and how they reacted under pressure. Nobody expected you to be the ace of the base, but if you couldn't manage that it was a good indicator that you might struggle in training.
Later when I was interviewing at Walmart they had us fly a Learjet 35 sim. Couple of turns, slow flight, and an ILS WITH a flight director - which is a waste of time. Any teenager with an XBox can fly an ILS with a flight director.
But again, that was back in the day when airplanes had six round dial gauges and scan was important. Today there's one screen, a pink line, trend indicators, scan no longer required.
So maybe the LOE type interview tests similar decision making and stress management without the expense and time of a sim eval.
Lots have changed in the last couple of decades. Some for the better, some for the worse. Personally I liked it when pilots were pilots as opposed to computer operators. Would be interesting to see how young pilots trained in Garmin 1000 equipped trainers would do in a Jetstream or a Metro or a DC9. I'm guessing not that well. But the reality is that doesn't reflect the job they do today where a better indicator of their proficiency might be whether they can eat an ice cream sundae and get the tray table closed before the airplane yells "retard" at minimums.