In a 1986 Bill Gates interview linked to by an earlier YC post (https://qht.co/item?id=194844) was the quote:
"I still think that one of the finest tests of programming ability is to hand the programmer about 30 pages of code and see how quickly he can read through and understand it."
Do you agree this was true in 1986? Is it still true now? If your two answers disagree, whence the difference?
No matter how well designed the code and no matter how often the code is refactored, reality imposes on that neatly designed little world and makes the code sub-optimal.
This is when being able to understand code becomes important. To get inside the head of the author is an invaluable skill (even if the reader and the author are the same person separated in time). To understand why they did what they did (the answer is not always "they were morons"). To understand how to change the code and still guarantee the underlying assumptions.
Also, I would say that being able to read and understand code is even more important when your co-workers are equal to or above your skill level. To try to puzzle out why they did something can lead to an "aha!" type moment which are invaluable in learning new ways of solving problems.
So I would say that being able to read code is important. Maybe not "one of the finest tests" but an important test nonetheless.