Michael:
Picture the upper fairway much tighter, with pretty heavy rough on the left where there is fairway now... and then the cut part is littered with those pot bunkers, as it is now... Combine that with a downwind and firm conditions, and well, there really was nowhere to get the ball to stop - it either went in a bunker (bad) or through down to the 17th tee or past (bad) or into the heavy rough (bad). It was just a bit absurd.
Now, with a bit more room up there, an element of skill has been reintroduced to the golf hole, in any wind.
It is a very dramatic hole, and now a great one. But heck, lots of golf holes settle over time - and you're right, we can expect the courses at Bandon to just get better and better.
BTW, the Trails course is wonderful. But I'm having a hard time nominating any one hole there for inclusion with the absolute best at the resort. Any of 14-17 might merit this, though... That's a topic in and of itself.