I (after some grudging questioning) support baited shark dives and hang out with the nuts on the Emerald, so my definition of "foolish" is probably a bit beyond that of most folks. That said, there were two things that prompted a "WTF" response here.
First, whoever the first shark feeder is, he's asking for it one day. At 1:40 he lets the hammerhead circle around behind him without even trying to track it; he's leaning back as if he's relaxing and taking a leak while a very large and excited shark almost puts its head on his shoulder from behind. If the hammerhead had decided to bite there for whatever reason, the first hint he would have had would have been the teeth going in.
Second, I've seen some folks I know do the "lead the shark around by the nose" bit; I'm not crazy about it but at least they have the bait and the shark where they can see both and if they lose physical control of the shark it's got a clear shot at the bait. They don't hold the bait behind their back; which raises the possibility of literally getting bit in the ass if you get double-teamed by a second shark.
Also, remembering the flap last summer after one of Jim Abernethy's divers went missing at Tiger Beach and that Neal Watson was using it as a pretext to argue that the "safer" Bahamian Diving Association ops should govern shark diving in the Bahamas (read: kick out the US-based liveaboards) ... if that's their idea of safety protocols, thanks but no thanks.