Sure that makes sense.
That last fundies class I hosted out here, the instructor had everyone doing them underwater with light in hand (as I recall). So it's the habit we're in. Not saying it isn't overkill, just that it's what we have been doing. Actually, I have gone along with my team on this one. Personally, I'd be ok with doing the mod s at the truck.
During the GUE EDGE, when we verify the light, we turn it on and deploy it, and it stays in the hand. It is deployed because (believe it or not) there has been the rare occasion when someone's light cord is trapped or something, and that needs to be addressed on the surface. Also, light in hand means light not shining in someone's face (yeah, you could flip it over and clip it - but we use that dangling position for only underwater when needing to clip off for a quick second. Otherwise we keep it tight). So the light is already in the hand when we get to the MOD S, if we're following GUE EDGE.
There is something about descending to 20' of blue water, forming a 3 man star and doing a Mod S before descending into the dive that centers you. When we are doing a 2-bottle deco dive with scooters, and we can all relax at 20', hold our position and everyone can see the easy deployment of the primary hose, it's like a moment of, "ok, here we go" that says we are all ready.
You are right, it may not be necessary, but just something we got into doing after the last fundies class. When divers are isolated in an area, and an instructor comes out, gives a class and leaves, you are not subject to the influence of other divers - good or bad. We may be too much by the book with some things, or have accidentally misinterpreted or slowly changed other things. Who knows? I don't have a problem with doing a MOD S at 20', if that's what my team wants to do. The truth is, when I have traveled and dived with DIR divers, they often do their own abbreviated version of GUE EDGE, including often skipping bubble checks.
It would be nice for some fundies instructors to chime in on doing the MOD S underwater with light in hand or not. Again this is not a big deal for me, just something to talk about. Truth is, until now I though most everyone did it underwater.