As an engineer, my view on days/hackathons is pretty simple: you don't pay me enough for my good ideas. If I had an idea that could make the business $5M, I'm better off going into business for myself. Instead, I'm going to do whatever I can to try something new and different to learn

So with that in mind, as a leader, I view them as opportunities for sanctioned on-the-job learning. I would hope that you spend the time automating existing processes or learning a new technology that might be useful. At our most recent company hackathon, we focused on a new way to do the old thing. Everyone could build basically whatever they wanted, but they had to use the new tool to do it. Not because we want the output, but because we want everyone to feel comfortable with the new tool. There was zero expectation about turning anything into a production project, although we did have two projects come out of it that are likely to go to prod soon without disrupting the roadmap.

I get where you're coming from, and I agree wholeheartedly with your assessment. If your work is doing hack days, and then getting mad because features aren't shipped, that's pretty shitty of them. Might want to try and find another place with better culture -- easier said than done!