I actually believe that there is room here for what you're all espousing, especially in terms of setting the hook.
I've found that there is a difference in my hookups depending on whether I am using a stickbait, a chugger or a pencil popper. in the case of a stickbait of chugger, I find a high number of hookups with the treble or single in the middle of the lure. With the pencil popper, I find a higher percentage of hookups on the rear hook or treble.
I'm like Luke in that I try really hard to set the hook into the fish. That is because I primarily use stickbaits and chuggers and with these, I firmly believe the fish often clamps down on the head of the lure and charges off without actually being hooked. I've seen this on numerous occasions and the reason they charge off is not because they are trying to escape from you or the boat at that point but because they are trying to get away from the other trevally who will be trying to snatch the lure from their mouths.
If you don't set the hook, they will release it as soon as they realise it isn't really edible. I believe that often when we think the fish has been dropped that is it actually never hooked in the first place.
With a pencil popper on the other hand, I find they tend to hook themselves on the rear treble or hook more often than not. You can set the hook but generally, I find they are already reasonably well hooked from this position. As Sachin wrote, he simply lifts the rod firmly and is on.
In terms of what to do when the fish is already chasing the lure, I think it really depends and realistically, go with what you think works for you. I've seen guys who increase the retrieve speed to guys who almost stop the lure and they all catch fish. I had one at Shoalwater where I had the popper at the boat already when the fish came around. I lifted it out of the water and then I literally lowered the rod tip to put the lure back in the water. The fish hit the lure that was dead still right next to the boat. I've alwasy been a strong proponent to keep the lure moving but I've got a friend who does what Sachin does - almost down to a dead stop and just twitch the lure. He argues that I don't catch any more fish than he does but I would argue he doesn't catch any more fish than I do with his method!!