Sure. Since I'm not going to go watch their tests to see how legit they are, I suppose it doesn't really matter. Even my comment about it being a red flag is unimportant unless I'm shopping for a school. If I'm not, then it isn't.
In any case, every instructor and school owner has to live with the choices they make. I know what my grading policy is and I can live with it. I make no money from it (it actually costs me money to promote a student to shodan) and don't grade in such a way as to contradict my own standards.
Thanks. As I've said, I'm not the martial arts police, nor do I care to be. In the end, despite the black eye, the watering down, etc, that some places may do, the shady tactics they use, really don't matter, because like you, I'm not watching their tests, and I most likely won't be training in places like that. I'm happy with the standards of testing that my teachers have. You're right...those people will have to live with the choices they make. My outlook on 8yr old 2nd dans probably isn't going to change, but I will try to be a bit more tactful with my display of disapproval.