Yes, that holding for two hours after a four and a half hour sector in bad weather when others are diverting to reasonably adjacent and acceptable alternates is very questionable both in terms of passenger comfort and safety and in terms of pressure on the crew when the obvious objective is to land at the planned destination come what may.
It is by no means a new phenomenon, nor has it always been management driven. The October 1965 Vanguard accident at Heathrow, is instructive. Diversions had been taking place for six or seven hours before that accident. I heard the crew talking to other BEA aircraft diverting as they made their way south and they were advised to divert. After holding and two unsuccessful attempts to land they were then encouraged by the successful attempt by another Vanguard.
ASN Aircraft accident Vickers 951 Vanguard G-APEE London Airport (LHR)