It has been interesting reading this thread. Seems to be a lot of folks who jump to extreme conclusions based on what I don't know. Never the less there are more than one good reason to drop at least part of your weights.
First, of all needing to drop weights doesn't mean the diver is overweighted. It just means that without dropping them in the present circumstances the diver doesn't have enough lift to get to the surface, or to remain on the surface.
Second, dropping weights doesn't mean the diver is going to be panicky, injured or any of those things. Those are Possibilities. But they are not foregone conclusions as presented.
Gee, when we were practicing Unconcious Diver Rescue during my OW certification I don't recall any of the "victims" or "rescuers" ending up with any injuries. Nor did the actual victim from a separate real incident that weekend. In all cases either all or part of the weights were dropped.
When to drop part or all of your weights?
In a situation when the diver needs to be positively on the surface and for some reason can't guarantee it by some other way. For example: An unconcious diver, One of those dives whose boat left them, or any similiar time.
When in a down current where trying to swim out of the current, upward finning and inflating the BC didn't solve the problem. Personally, I've been in one of these where I was to the point of dropping weights when the current finally let me go.
There may be others, but these are good examples.
So, in Open Water any time you can't get to the surface, or stay on the surface by conventional means, Drop Weights. If you are rigged so you can drop weights incrementally all the better.
Now the rules change a bit when there is a Hard Overhead, like a wreck or a cave. Being pinned to the top of a compartment in a wreck doesn't solve very many problems. But then the kind of situation where the extra lift would be helpful, like a down current, doesn't come into play either, at least in wrecks( I don't do caves either above, or below water).
If it is a Soft Overhead, like a Deco Obligation then the diver is exchanging a certain bad outcome for the possibility of a better outcome. Part of the risks and rewards of Deco Diving.