First, I was a DM and passed all of the swims. I do have mixed opinions about the timed swims. I believe I did them (been 4 years) all in the 2-4 range on times but still, I wouldn't say I am a 'good' swimmer (the 400 was the slowest at 2, the 800 was a 3 and the tired diver tow was a 4 (almost 5 actually, remember thinking about doing it again to get the five because I was that close).
The point of the standard is to establish stamina of a DM candidate. While many can swim well, some cannot and some of us have bad technique. Personally, I'd add another option where if you are comfortable in the short distance times, add a much much longer distance with somewhat relaxed targeted times. Think 1/2 mile or so swim. This should take care of the slower but consistant swimmers.
In the end though, its really not that hard to meet the minumums for PADI.
Oh, and for the subject of flipturns vs turns vs whatever. I doubt it really matters. Think about this, if you are the instructor of record and you DM candidate does flip turns and has a good time for a 4 or 5, you don't have much to be concerned about. On the flip side, if they just make a 1 or 2 using whatever advantage they can get, for all of the swims, well you can use discretion to get them to improve their ability.