In my mind, unless there's legitimate instruction taking place, this situation is just as bad as pencilwhipping time.

The whole point of counting hours is not to get your ratings or get to an airline, it is a gauge of experience. This is why I say it's like pencilwhipping hours. You're getting the same experience either way.

This is also why pilots often refer to quality of time. Most employers would look at night, IFR, wintertime cargo as more quality time than jump pilot time. That's because they are looking for the best experience.