Even though the pros were bombing it down there everyday, they still had different shots to play depending on where their drives ended up and where the pin was. So I'm okay with the hole, especially considering like many have said that it comes right after the Road Hole.
That being said, I don't think the hole would work except for the fact that it finishes right in the heart of the town like that. If you put that hole out in the middle of an open field with nothing around, it would just be weird. Don't forget about the threat of OB also. Dustin Johnson hit it on the road on Sunday, and it proably cost him a few Ryder Cup points, along with some money.
I have one question though. Has the R & A ever put the pin way back right on 18 for the Open for a day? I think I remember seeing that once before at a previous Open, but I'm not positive. It would have been nice to break up the 4 days straight of having the pin right over the Valley of Sin. Plus, it would give the pros something different to think about- the threat of hitting OB on your second shot. Or at least having to hit putter through the Valley of Sin and then another 80 feet to where the hole is would be a difficult shot to see them try.