Based on the examples of word problems in Babylonian mathematics, it seems like they are created from real life examples. The contents are based on everyday life situations such as calculating grain-pile, bequest, and how much you can buy with a given amount of money. They seem to be practical and general. However, the article also addresses some Babylonian mathematics words problems were beyond real life applications. Old Babylonians might have purposed designed those abstract word problems in a way to test how much they could do with the mathematical knowledge they had at that time.
In contemporary algebra, we tend to follow the two levels from Babylonian mathematics. First level being practical and general mathematics that can be applied in real life. Second level being extended word problems that are more abstract, and aim to practice the mathematical concepts learned at a higher level. These second level word problems are often the ones we hear students complaining about, "When do we ever get to use this in real life?". I think it is important for students to be able to solve word problems at the first level, but also understand word problems at the second level. It is true that we may not encounter these higher level abstract problems in real life, but this pureness in mathematics is what we need for developments in learning about mathematics. If mathematics were only at the practical and general level, how do we move forward to learn more about mathematics? If mathematics had remain at the everyday life examples level in the Babylonian era, would we still have the mathematical knowledge in today's world?
Good rhetorical questions at the end of your post! You've made interesting connections between Babylonian mathematics and the math of our own time. There are certainly practical elements, and we also love to push the boundaries of our thinking beyond the practical for the challenge of it.
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