That sounds like a terrible experience - I really can't see what the point is of offering that 'service' to Y passengers.
For contrast however, I used the service on a 16 hour layover in J recently and was impressed.
Booking: Flight ticket purchased by telephone, agent informed me of eligibility and sent e-mail confirming the hotel as part of the itinerary. Very straightforward even if booking on the 'phone is much slower than online.
Afternoon arrival in DXB = 5 minute wait at immigration. Hotel voucher had been provided at check in, so straight to limo desk. Small amount of negative marks for the wait for a people carrier of 5 minutes... plenty of cars outside and it felt like they were waiting for a few people to show up so they could group us. For reference, the normal waiting time there is about 1 minute in a queue to be provided with a voucher, then walk outside and get straight in the next car.
Check-in at hotel was another 5 minutes, vouchers for lunch and dinner provided. Room was one of the older ones at Le Meridien but clean, comfortable bed and good shower. Lunch at the Thai restaurant was good, dinner at the Italian poor. No free internet... this is a pet hate of mine.
Wake-up call 2.5 hours before flight - quick shower - transport 2 hours before flight. No wait for J check in and straight to the lounge for breakfast.
All in all, a great service and one I look forward to using again.