Regarding the underwater navigation dive in the PADI AOW course:
First, like the other AOW adventure dives, it is a one-dive introduction to the subject, not the specialty course itself. It’s purpose is to teach basic skills and whet your appetite to gain greater competence. By itself, it cannot be expected to make a student a skilled navigator. That doesn’t mean it (or the underwater nav specialty) isn’t worth doing.
Second, students doing the out-and-back and square patterns are permitted and encouraged to use all available information, not just kick cycles, time, and bearings. I do one out-and-back where the depth is more or less constant but there are visual cues on the bottom adjacent to the route but not obviously along the route. I run the second out-and-back along a route that takes them deeper on the way out and shallower on the way back in, but with very limited visual cues available. When they get back to the right depth, they’re either within tolerance or they repeat it. The square incorporates both opportunities to glean additional information. Also, the site has only moderate visibility, so they do have to trust their compasses.
They do come away from the experience with some useful skills and knowledge.