I can assure you, the lip **helps** hold the type of block in the picture in place. Keyword: HELPS. We just wrapped up a job last week where they had a 4" block wall that we removed. No drainage aggregate. No fabric, no nothin. If it wasn't for that lip....the block would have been on the ground!
And......I have pictures of the wall before I took it down. took 3 of 'em!
And yes, the pins do shear.
LOL - I think we've seen quite a few posts of mere speculation from 'ol Tom
Stop using that junk block and use a real block Cornerstone