Regarding your point 1, wouldn't the sensible thing be to question them about this sort of thing? Find out their reasoning for implementing the solution the way they did.
In a larger company, where you're always hiring and there's specific time allotted for it, that approach makes some sense. But in a smaller company where I might have one or two positions to fill and the interview process is a serious hit on productivity, presumably the net step is to set up interviews and the first interviews are going to go to the people who didn't completely misread the exercise and submit Enterprise FizzBuzz.