I'm from Singapore and in southeast asia, such practices are common.
Although i don't judge what's right or wrong, each country and culture have different ideologies and practices.
Asians tend to overstock their holding tanks but keep water quality high by very large water turnovers, UV, etc.
Westerners tend to understock their holding tanks.
It's one of those things that will never rest and will constantly be a debatable topic wether it is right or wrong etc. different practices may seem right or wrong to others, and to each, their own opinion.
I'm from SE Asia and this is common practice here and at times i do not condone it, but most of the time i just ignore. There's a LFS in my countries that bring in hundreds of fishes and keep them all in high turnover, daily water change, UV system, but within a few days, all will be exported out to rest of the world.
Different ideologies.
There will be no end to the arguments and to each their own i guess.
Not asking for a flame or start something, just how i feel

I like to stand neutral.
Hope i don't offend anyone, i really mean no harm.