Your phone screen story is quite nice. When I read your question, I would have answered with successive doubling as well. In fact, I faced the same question at an AWS interview a long time ago. The question was mathematically the same question but formulated differently. I answered with the doubling solution too, which leads to an O(log n) time solution, asymptotically. Your interviewer's immediate objection to your squaring solution seems like a major failure in their intuition. When I read your solution, purely by intuition, that is, without resorting to any rigorous reasoning, I felt: wow, that's interesting, your solution would land on the zero region in merely O(log log n) time. Why didn't I think of it? I think your solution should spark interest rather than dismissal in a curious person. Of course, the binary search after that to find the exact transition point blows up the time consumed back to O(log n).
Once again, thanks for these really interesting comments!