> They made him do it again and he passed.
I would hire the "just use postgres" dude in a heartbeat without re-testing, if the numbers made sense, and perhaps give a stern talking-to to the interviewers. But then again I'm not a unicorn founder, so what do I know.
Eh, it's a good answer and shows good instincts, but they still want to know how he would design a system if one was necessary. There's no need to be ridiculous about any of this from either perspective, which is why it should never have been a "fail" without the original interviewer simply saying "That's a solid answer now tell me what you would do if you had to build something new". I mean look how much time he wasted for everyone including his own CEO by being stubborn about it.
My read of the story is that the decision to hire was already made, the interviewer goofed but was then set on the right track by his boss.