Scott,
To answer your second question first, I have no doubt that Biarritz holes "worked" in the early 1900's because golf balls did not fly 200 yards in the air. Players simply had to land the ball on the approach between the hazards and roll it through the swale.
In today's game, Biarritz holes only work as designed IF the rear putting surface is so firm that a ball that carries to the back won't hold the green. (The holes also "work" for shorter hitters that can't fly it to the back.)
My home course has a Biarritz that plays 240-260 from the back tees, but sadly, I just take out my driver, which carries 235-240 and the green holds my shot. However, this past Spring was one of the warmest and driest on record in the Northeast US. Our greens were so firm for a one-month period that amost all the players had to play a runup shot. It was AWESOME and so much fun to watch.
Our front section is maintained as putting surface, so you might ask why I don't play a low running shot throughout the year. The answer is that I have tried a variety of clubs and swings, but I can't keep the ball straight enough, and ending up in the front left or righthazards that guard the approach is death, so I'd rather risk driver and miss in the back bunkers.
So the answer is the holes really do not worked as intended, unless the green is extremely fast and firm.