Philo This is going off on a tangent, but I started the thread, so I'll do it anyway. checks the 'thread starter's assumption of privilege' box 
To me, academic exams often a test of memory, not ability or understanding.
I used to have this argument with my mum and her friends constantly when I was regularly sitting exams, even though none had taken any for well over 30 years at the time. In my mother's case, university level exams were easy for her because she had a photographic memory so could write everything she'd learned with minimum effort. That was not a test of ability or understanding; it was a very simple case of recalling and reciting what she'd read.
I had no problems doing well in exams, but a very intelligent and hardworking friend of mine, who is far brighter than I am, did. She is one of the smartest people I've met and eventually went on to get a degree from Cambridge; she's now a senior lecturer in her subject. It took her a long time to learn to take exams without having a total meltdown.
When she and I were at school together, she used to freak out about exams. She'd get so stressed that everything she had learned would go out of the window. Exams certainly were not a test of her ability, or of how well she understood her subject.
I think as a youngster I would have argued that exams are the best way, because of my own personal experience - rather like my mum, although I didn't have her photographic memory.
Once I saw how the stress of exams people who were more capable and smarter than I was, I saw it differently. (I know you said you're not fond of exams so please don't take this as a comment aimed at you, it's just a general observation.) I thought it was really unfair that I got better marks overall than the friend I mentioned earlier, despite her superior ability. Had our courses involved more assessment by coursework, I'm sure she would have outperformed me, or at the very least done as well.
TL; DR: Academic exams, IMO, do not necessarily demonstrate one's intelligence. We all know that there are different types of intelligence anyway.