You buried your lede IMO. The interviewers had this cute game and when the developer didn't play by the planned rules (build up a monsterous collections of branching on top of a for loop) they were screwed. Issues:
* rules revealed one by one. Spec changes and is always incomplete, but you never even hear about changing spec that your existing solution already handles.
* artificially handicaping developers. This is the opposite you want; it's a bad smell if developers are not offloading to rock solid libraries and language features
* punishing creativity. You're getting a great view into how this person works and thinks; isn't that a primary purpose of all interviews?
* anti-lookup / matrix. Some of the most efficient solutions use this aprooach, or an inherient property of the desired state/input (data as code). This is super-common in game development; John Carmack would have failed this interview too.