Mark,
Does a hole have to be strategic to be great? Is there anything wrong with the architect dictating the exact, heroic shot you need to hit every now and then, especially on par 3?
I'd call it great for all the reasons you mentioned. It is hard to discount the visual as it is so stunningly beautiful that it doesn't look real. It's hard to discount the ocean when it would've been an epic failure had they not built that golf hole there. I also really like where it comes in the round and the fact that it is in your head over the course of the round. For many, it is a once in a lifetime experience and the last thing you want to do is be haunted til the end of your days by blowing it into the Pacific. Unfortunately, I speak from personal experience.
I have to agree with you here. If you have a good round going, nothing would make a par 3 more intimidating than making it a 220 yard forced carry over water. However, you also have the option of laying up over to the left. Several options exist...also several outcomes.
1 - your guts are churning, you go for it, blow it in the ocean and blow your round. You risked it, and did not pull it off. Forever, you tell your friends how you blew your round at Cypress on #16.
2 - your guts are churning, you decide to lay up, you par the hole, but then (like Tim) you lament that you did not go for it for the rest of your life.
3 - your guts are churning, you go for it anyway, pull it off and remember for the rest of your life how you made the shot by risking it all.
All three scenarios include causing you to be nervous, causing you to actually make a strategic decision, and lastly, you remember that decision for the rest of your life. In my book, that is a great hole!
I, for one, can still see my approach to #16 in the air as if it were yesterday. It has been 15 years since that day.