I like the hold system and I like the stun system in DOA. I even like conceptually the ability to extend stuns, but I agree that the system needs to be tweaked.
Make critical stuns delay the ability to hold, great idea. Doesn't mean the stun or hold system should go away. If you think this is suggested, stop freaking out, noone suggested that.
Make holds more punishable with longer recovery and tighten up the active window a bit, so that it's a real decision and not a spammy-go-to.
As Mr Wah indicated on the last podcast, there really isn't much to do to DOA to strengthen the mechanics and make it more solid. What we know about DOA5 is positive, as holds appear to be weakened in strength (we don't know about active/recovery frames yet) and there is sidestep, potentially a very meaningful addition.
Getting a reward of not worrying about defensive hold for a few frames, for putting an opponent into a critical stun, is something a really solid set of strategies can be built upon. Whether they keep or ditch the extend-stun system or not. I'd think critical stun should only occur after an extended stun or a difficult to set up counter hit.
You can take a risk to "reset" the opponent and play for another stun before launching, or go for the launch right away on a lesser stun and risk the counter, or mixup into a throw. So long as the holds aren't super quick in recovery, the attacker will have advantage and the DOA strategic flavour is preserved in a more solid game.
Edit: Normal life is the right way to go and they should remove life settings from the options.