This seems like rubbish to me. Exams work fine if they're employed in the right incentive system. In US universities it's not exams that are broken, it's the incentive system that they operate in. Today, exams are simply a tool for instructors to get good evals, students to get good grades, and universities to maintain accreditation.
Job interviews work fine if done properly. First, interview the right people (filter out hopeless candidates). Second, have the right people do the interview (hint: future colleagues). It's not perfect, but it's not "broken".
If you really knew the subject, you would have passed that exam.
