Compose interview questions

Applied online for a UX designer position. Strange as there was no need for a resume. Overall process was a bit daunting, yet somewhat refreshing. Would be interested in finding out if this methodology actually works for them.

It was the most disconnected application I've submitted. I can't remember the initial application but a few days later I received the email about doing a sample exercise. You log in and they have some instructions on what to do. But it's very vague, they say you can change anything they require, don't copy, etc. The exercise is a lot of work overall, a homepage design, 2 banner ads, and a tshirt. This is becoming the norm for any job it seems but there isn't an indication of how long they expect you to spend or any compensation (which every other job has done). At the end I received an email that they wouldn't move forward but couldn't provide any feedback. I could have been passed by from some technical reason or something they perceived as copying, or they just didn't like it. Although the idea is to be free of any preconceived judgement, this whole exercise could be avoided by just looking at work submitted. Design work really is an iterative process and I don't think their process captures this.