You know, I have read many posts on the topic of the "wrongness" in forcing time spent and how it is not geared towards learning. I agree. The reason I have the need is the age-old argument of "the regulators". I've read some forums that are actually pretty humorous, poking fun at the idea. Unfortunately it is not something I can laugh at wholeheartedly because it is my job to ensure we are compliant with the regulations. I suspect there are many schools similar to mine that have gravitated towards Moodle for the very fact that it offers so much, and it is open source. Many small schools simply can't afford to pay for an LMS, whether it be on a per-student basis or an outrageous flat fee. I was surprised at the cost when I started my research over a year ago. Here in the U.S., many businesses have been hit very hard and schools like ours have closed their doors or are struggling to survive.
I had hopes for 2.0 having more of the features that we need for "enforcement", (what a dirty word) after having read some of the documentation it appears that Moodle is moving in the other direction, for example, the lesson conditions based on time spent are going by the wayside from what I can tell. It makes me believe that I am attempting to force a square peg in a round hole.
As for frustration, the students are familiar with being forced to do X, Y, and Z because that is all they have known, and it likely does cause frustration if there is not enough material in a lesson to justify the time (and the student actually reads the material). Do I justify this thinking? Not really. The regulators do not look upon our students as "learners". They are numbers, and they are either compliant or non-compliant. I think regulations are an attempt to enforce learning, but the end result is not the desired one.
Giving the student the choice to go ahead and complete the quiz prior to spending the time in the lesson was an attempt at allowing a little more freedom to the student as these particular regulations do not force the order of the items, just both conditions must be met prior to completion. I did as you suggested and took the course down a linear path, it satisfies the regulations and presents a clear path to our students.