I love the holds, as their ability to negate move spams is incredible. In other fighting games (SC) you see the same, boring anus moves looped endlessly, even at a highly competitive level. They find moves that are easy to connect and "safe," and then there's really no reason to do anything else.
Holds in DOA prevent that. It fucks spammers hard, and forces you to change up your tactic several times per match. Honestly, it's one of my absolute favorite aspects of DOA (they're also very flashy and cool-looking, hurr). That said, in the past (4, anyone?) people could SPAM THE HOLDS which were intended to prevent spamming, kinda defeating the purpose.
So far, I feel like DOA5 has a pretty good balance with them. You have to know exactly what you're doing. Randomly throwing out holds will not get you anywhere. That said, some of the windows are a bit too tight on the advanced counter holds, imo. Maybe there's someone out there who can use Ryu's advanced Izuna counters flawlessly mid-battle, but I've yet to see it (aside from Master).