I can certainly understand why some people think ice fishermen/women are nuts. Seemingly staring down at a hole in the ice in freezing temps with the wind and snow howling around you does look pretty nutty. And there are times when I question my own sanity. It does, however, beat watching the idiot box all day. And it can be downright fun/rewarding when the fish are biting. Less so when they are not.
Yes, you can pull fish/line in hand over hand but a big, vigorous fish will require that you feed line out between your fingers when it runs. If you don't, it's bye bye fishy. As has already been said, cold water does make fish more lethargic but I have also had some larger bass and catfish give me a good run for my money-with many long runs peeling off yards of line from the spool on my reel. If my reel hadn't had a smooth drag, I'm sure I'd have lost those fish-especially with the tiny hooks I generally use. (You can't tell me a large fish won't eat a small meal).
I'm not very good at multi-tasking and trying to keep track of a bunch of tip ups doesn't float my boat (or ice shanty)-though if you're into that sort of thing, that's great. Instead, I drill holes in somewhat systematic way and then I dip the transducer on my flasher down into the holes until I find fish (or some kind of cover). (In shallower water this doesn't work very well as the cone-angle on the transducer doesn't spread very wide. But it does alert me when a fish approaches and where/what I ought to do with my jig). So really, I'm trying to fish one hole at time in a precision manner-moving around if I don't find/attract/catch a fish within around 5 minutes. I don't sit still a lot until fish are found.
I've found that dropping the jig to the bottom repeatedly will create a "cloud" of mud and debris which, in turn, often attracts fish to check out the distrubance. This is especially effective if the fish seem to be hugging near bottom.
Mostly I say all this to, in effect, explain some of the nuances of ice fishing and why/how it can be fun. If you're doing it right, it really isn't just staring down at a hole.