Neil,
Individual circumstances and the chain of events as recounted by the parties don't seem logical to me.
My guess is that Raynor and Hollins engaged in a discussion regarding the 16th hole and whether it should be a par 4 or par 3.
As a result of those discussions I think they ventured out to the site and Hollins indicated that it would make a good par 3 from a tee or tees more benign than the current one located 222 from the current green and that Hollins teed up several balls and played to the site of the current green from a position far to the left of the current back tee.
I think Raynor, seeing that a par 3 could be played from that location/s, incorporated a par 3 into his plans, which I would love to see.
I think MacKenzie, was aware of Raynor's routing and made the hole a par 3 in his design/plan/routing
Dropping a ball onto ground ill prepared for golf and then striking that ball 220 yards across that chasm, with heavy ocean air, with a 2-wood, is beyond believable, except for the cretins who frequent this site.
From there, the story took on proportions commensurate with the "WOW" factor associated with the area