Appalling Holds Procedure

I just read the most appalling postings on LibraryThing. Apparently, there are libraries that put their hold books on a self-serve shelf so that the patrons can pick them up themselves. Not surprisingly, this has led to people being informed the book they requested was on hold for them to check out, only to discover that upon arrival at their library, that it has been checked out to someone else. Then they are told that the library has no way of knowing who checked it out, even after it comes back. How could the circulation system check this book out? The circulation staff claims to have begged upper management to keep these books behind the circ desk, but they were overruled. What the aitch-ee-double-hockeysticks is this??!! Some sort of Alternative Universe where Mr. Opposite lives??!!