I've never done a take home test that produced anything that could have been vaguely useful for the interviewing company. Usually the problems are pretty artificial.
Well if they are good enough for you to put their code into your program then shouldn't they be good enough to be offered a job? Seems like it works exactly as intended in terms of trying to find someone who can do the job
I've had multiple take home tests result in changes to the products that company offers. I've never received a job offer from those companies. Maybe your experience differs, but I've had a sour taste left by such practice.