You are not wrong. I think the best use of this would be a verification test that had significant impact on your grade but didn’t necessarily fail you if you did well in other evaluations.

Think of it as a conversation like a job interview that takes into account the different ways people react in that environment. I do this when I’m interviewing job candidates. I interview people for technical jobs. I value good communicators but if that’s the only people I hired, I wouldn’t have as good a team. But if I do hire someone who isn’t as good as this, I coach them. They get more comfortable. I realize some people have anxiety or other things that make this very difficult, I think that could be taken into account (e.g. more written work but in an observed setting).