Kihon is just a learning tools to get the correct technique. It is pointless to shut down a learner/students' progress. If you want to really test tori's technique, do it during RAN-DORI, SHIAI or JIYU-WAZA.
So, in conclusion... success in shutting down tori's technique during KATA training is just plainly an EGO boosting attempt. It serves no other purpose.
IMHO, it depends the degree you shut it down and for what intent. I would agree that kihon is a learning tool, but at all levels.
If a sempai is offering resistance (shutting down) than it may be to bring kohai to the next level. Just giving the technique, other than the first few levels, does no help one learn it. There should be just enough resistance (shut down) to make them work the technique, but not enough to prevent them from finding the next level.
If it is just ego on sempai's part, then yes, I would agree it is incorrect.
Just because someone has rank (or none) and some degree (or none) of physical ability, does not mean they are right (or wrong) or have worked on themselves psychologically, philosophically, or spiritually.
Whether you agree with what some one does (or not) is not nearly as important as what you do.
Some times being "nice" isn't, and some times being a "jerk" isn't.