I hold what may seem to be a contrarian view to the use of rooms and hold and even support their (appropriate) use. However, they should never be used as punishment, or part of the "educational process." The should be used for a single purpose: an emergency method to stabilze safety. Any other use is an indication that the school or the staff does not know what they are doing.
Any time a hold or a padded room is used, it should be viewed, as Nicole said in the first comment, as a failure. It's a failure to provide the appropriate environment in which a child can learn. It doesn't mean the school or teachers are cruel or evil. It just means that something needs to be changed. It only becomes cruel when all the expectations of change are placed on the child and the events repeat themselves at the child's expense.
The reality is that our kids are changing and growing in ways that we can't always predict. I view a room or a hold as a "safety net" for when all other steps to preserve safety fail. Once it is necessary to resort to these methods, the team needs to take a very close look at what precipated the behavior and work to prevent it. The causes could range from noise, frustration, another student's actions, changes in medication, or other reasons. Whatever the cause, the outcome should be viewed very seriously. Repeated occurrences indicate that dramatic change is needed.
One concern that I have about removing these rooms is that, for those times when other methods to ensure safety fail (and they will occasionally fail, no matter how hard we try), the only alternative will be calling emergency responders, who may even be less skilled in dealing with our children.