I will add another item into the mix, taken from the Chinese forms and fundamentals. Often the movement is exaggerated in practice, and people who are not familiar with the purpose and the method criticize that exaggeration. The fist chambered at the hip while in horse stance could be an example of this. But the purpose of the exaggeration is to help you understand the body connection that gives a real boost to ones power. Throwing a punch with the whole body working together is a lot more powerful than throwing a punch with the strength of the arm and shoulder. The exaggerated movement can help a student understand how to make those connections and develop that skill. Once that is done, then the exaggerated movement is reduced and eliminated in actual application, even if it is retained during training as a reinforcement mechanism.
But someone who isn't familiar with that approach to training simply sees an exaggerated movement in a training scenario, and believes that is how someone tries to fight, and thinks it's a bad idea.
I think you're spot on with your assessment. I'll toss in another example. The 'down block';
Often taught as a block for a low attack, such as a kick. How often to we see this in actual fights? How effective would/could it be in a real fight? Let's examine the use of this 'block' against a kick. For a defense against a front kick...perhaps. Although we need to realize that an reaction is slower than an action. But I suppose it might work...maybe. But against a side kick, particularly if the kicker has conditioned their shins the defense has some problems. First, the defender using the 'block' would have to anticipate what type of kick the attacker is going to use. Not an easy task in a chaotic, fluid situation. Second, trying to block a side kick in this manner will require spot on timing and the correct point of contact i.e. the instep and not the shin. Why? Well if the attacker has conditioned their shins and your ulna connects with their shin your going to end up with an injured arm. I speak from experience. I've conditioned my shins over the years. Attacker did no body conditioning. His unconditioned limb came into dynamic contact with my conditioned limb and ended up with him on the ground in quite a lot of pain and injury. Third, is there often a better interpretation for this movement? Well, depending on the kata and associated movements it makes one hell of a hammer fist strike to the lower body part of an attacker.
Again, the bunkai depends on the kata in question and the associated movements. This is one example of a possible bunkai.