I hate to be the bearer of bad news... but this is absolutely PADI. While I agree that the individual operator is at fault - for being an absolutely horrendous facility (according to your story,) PADI is ultimately to blame. PADI, SSI and the other agencies all receive complaints about bad operations, yet they continually fail to take action to shut down the facilities because the facilities are sending them the almighty dollar. PADI makes it's money from operations that herd you in and out... don't think they are not aware of this and are turnign a blind eye.
While in this case the operation was PADI, I can tell you that SSI and others are doing and allowing the same types of things to go on. Now not all PADI and SSI shops are bad, and some actually take pride in what they do and treat you right and make you earn the c-card. At the basic level, the individual shop/operator is responsible, but just like being the boss at work, if your employees fail... you fail... and PADI simply doesn't mind failing... because in this industry, failing (herding large numbers through) makes them a lot of money.
To all of you who say I'm agency bashing, give me an example of the last time PADI or SSI pulled a dealerships license for providing this type of service. As an SSI instructor, I can tell you that I have written direct complaints about similar practices at facilities which I worked in. The answer was always, "the owner has the right to run their operation as they see fit." Nevermind if it is dangerous, provides a horrible experience or is even outside the standards. The corporate PADI and SSI people do not care. And I'll stand in their corporate headquarters and shout it at them. I've already been on the phone with corporate SSI... and quite frankly - they're a joke.