You've never seen massive shock due to full system collapse have you? Are you familiar with what happens when a bullet hits the human body? People are a funny animal, in that, when shot, instinct is to drop like a rock, then collect their wits and decide if what they're doing is worth getting shot again. When shot, people lay down and scream for their buddies. They don't take a shot and keep coming at you. I suggest you research what really happens to people when shot, rather than taking what the movies tell you at face value.
The point of the Hydrashock and other hollow points is to cause a big ripple in the fluids of a body, that cause organs to rupture and nerves and muscles to turn to mush. This phenomena is, strangely enough, known as hydraulic shock.
It isn't an issue of bleeding out, it's an issue of causing enough trauma to cause massive system failure and therefore, massive shock. I've seen many people in shock and few have had much energy left in them.
You are referencing two things that were envogue for a long time, but reality reared its ugly head...
The first part is the psychological issue of the bad guy deciding to stop fighting. This sounds good on paper, as we can sit in our easy chairs and say "Hmm, if I was shot, I would give up. That would hurt." Unfortunately, real-life doesn't reflect the world from my easy chair. Chemical influences, either natural (adrenaline) or artificial (meth, crack, coke, heroin, alcohol, etc.), on the human physiology tend to dull the pain sensors, which tell the brain "Hey! That hurts!" If the brain doesn't know that something hurts, then it is unlikely that it will tell the body to lie down and stop fighting. In my neck of the woods, the amount of tweakers makes this a downright dangerous thing to rely on.
The other issue is the reliance on causing "...a big ripple in the fluids of a body..." or HYDROSTATIC shock. Once again, this was something that looked like a great idea on paper, to people who weren't trained in anatomy, and it was repeated throughout the gun magazines. When it made its way to an ER doctor (whose name escapes me, but I believe it was Martin Fackler), he started to perform a study. He took a whole series of GSW victims that came into his trauma center, and compared their wounds with the death rates. Most of the people who died, died because they bled out, or were hit in the central nervous system (spinal column or brain). The very few that did not die because of this, died because Hollywood had told them that being shot kills them (your first point; it is valid, but there are too many variables for it to be reliable).
Upon further research, the doctor concluded that what killed people was not the hydrostatic shock, with a few exceptions that I'll discuss below, but rather the destruction of key parts of the body that will either cause massive hemmorhaging (bleeding), like the heart or lungs, or a stop the sending of information (central nervous system). The exceptions to this were the brain and the liver.
The reason the brain and liver are more susceptible lies in one of their similarities. Both of these organs are inelastic, meaning they don't stretch. In addition to bone, these are the only organs that have that description. Every other organ is elastic. What this means is when someone is shot, although the hydrostatic shock does push the surrounding tissue away, it does not permanently damage it to the extent to cause death. It creates a temporary wound cavity.
Significantly more damaging to the body is the permanent wound cavity, or where the bullet destroys the tissue permanently, not just pushing it away. This is actually what all modern expanding ammunition is designed to do. By increasing the size of the bullet, the likelihood of hitting a more vital organ that will cause massive hemorrhaging is increased. Originally, the Hydroshock was designed to increase the hydrostatic shock, which is evident in the name.
