1) Lots of useless bouncing / jumping up and down.
2) NO punches allowed.
3) Hands held down low.
4) Youngters under 10 y/o wearing blackbelts.
5) Undeserved promotions... NOT based on merit... too many, too soon.
6) 100 lbs of protective gear.
7) Board breaking....
I've seen many / most of these things in schools of other MA styles as well. So I view this as more of an instructor problem than anything else.
1) bouncing.
I never taught this.. I consider it a waste of energy - AND more importantly you take away 50% of the time you could use to launch an attack. It also leaves you vulnerable.. all you have to do is time their jumps (which are usually rhythmic) and come at them as soon as they leave the ground. The additional delay they incur because they are in the air usually results in success for you.
2) no punches
Some people have a definite preference for kicking, just as some have a preference for punching. If that's their "style" then they can learn to deal with it. If they are successful with that "style" of fighting, who am I to tell them to do otherwise. HOWEVER at the least, the student needs to be able to defend against punches.
3) low hands
Consequences of this action are the best teacher. Let them get smacked a few times.. then suggest that maybe they should do something with their hand position.
4) child black belts
I believe this is more of a money maker for the school than it is anything else. BUT if they can do the work, then they deserve the rank. Typically kids under 16 - 18 years are given poom belts, and are retested when they are older for their black belts.
BUT how do you view small people with black belts? I have seen very small women (< 5') earn dan rank. If you object to children with dan rank, then how do you feel about small people? Just curious.
5) undeserved promotions
I've seen this. I saw a girl get promoted for taking care of the Master's horse while he was away on vacation. It happens. No, it isn't right.. but it happens... in all schools (the example above was at a Kenpo school).
6) excess protective gear
A friend of mine runs a Shotokan school - and his insurance demands that if there is a piece of protective padding, that his students wear it during sparring - and during all contact training. Not doing so constitutes negligence in the eyes of his insurance company.
7) board breaking
Pros and Cons go both ways on this. There is some benefit to this type of training, but that benefit can be attained by other training methods. People who have to break at a rank testing get a feeling of accomplishment.. which is good for business.