It's crazy the original interviewer allowed it to come to this which sounds like a waste of time for everyone involved, instead of simply saying; "Very good that is a legitimate solution to the problem. Now let's pretend you have to build something new, what would you do?"

Why on Earth did the company have to be so willingly obtuse and stupid about it including what sounds like the CEO (well at least he gave him another shot, but there doesn't need to be implicit assumptions about the "point of the interview", just come out and address it head on explicitly.)