You see, I am not against showing that hourglass cursor. What I am against is to show a hourglass cursor instead of actually digging for the root of the evil.
For example, in the case of drag and drop, a simple Freeze() and Thaw() works wonders, and if you process a paint event just before freezing the window, then it is not even visually unpleasing.
This is still not pretty, but it successfully works around some of the problem. It actually causes 20 files to be loaded almost instantly when in the cache (and in well under a second otherwise), as the massive GUI overdraw is not done any more.
Add the busy cursor to that? I shan't be bothered, it will only be visible for a fraction of a second anyway...
Of course it would be better to fix the problem in another place, since even without overdraw, we are having unnecessary overhead. For example, when opening 25 files, we rebuild the "Recent Files" menu 25 times from scratch, which fires around 75 update UI events, which are processed by several handlers each. Rebuilding the menu only once at the end of the batch would be the right thing to do. However, this is of course a lot more work than calling Freeze() and Thaw().
There's more to it than just that, but that's one example.