I didn't think churches did the dtd anymore either. Apparently, a small church my DD went to VBS at last month was bringing busloads of children each morning. I don't know what their method was but what you described would freak me out.
I would call the church and let them know their method wasn't the safest one to be using in the times we live. I take these situations on a one by one basis and wouldn't have been concerned but if your kids were afraid and not able to fend for themselves, that's not okay.
I sent someone my DD didn't know to pick her up from class yesterday at church. She did seem unsettled when brought to me. When I saw her face it occurred to me that it wasn't smart of me to do but it was a learning experience.
Truth does not become more true by virtue of the fact that the entire world agrees with it, nor less so even if the whole world disagrees with it.
--Moses Maimonides