I'm not familiar with that particular dive operation but setting a 1 hour run time limit for recreational dives on a "cattle boat" open charter seems pretty reasonable. Most divers will run into gas or deco limits by about that time anyway. Allowing longer dives for random divers with questionable skills increases the risk that someone will get lost or bent or run out of gas. And in some places the surface conditions can deteriorate really fast: recovering divers in the middle of a squall can turn into a real CF. If you want to do longer dives then charter the whole boat with your friends and coordinate plans with the crew.I remember this LCBR rule. As well as their "1 hour only" rule. Their insistence on their "rules" is among the many reasons I haven't booked with Reef Divers since.
When I'm doing a recreational dive with a teammate who has high gas consumption but otherwise decent skills I'll pass them my long hose at the beginning of the dive and let them breathe off my tank(s) for a few minutes. It's really not a problem as long as everyone stays above minimum gas.Sharing air is for when there is a problem (OOA, regulator issue, tank issue etc), not to continue or extend your dive. When you are on your buddies octopus, you should be on your way to the safety stop / surface.
Sure, every diver can reduce their gas consumption by being more efficient in the water, staying calm, and doing more aerobic fitness training. But it takes a while to reach that level. We should make some allowance for newbies as long as it doesn't compromise safety.