I think that the Drag Hesitation has largely fallen out of fashion. It is still used in medal test routines at around Silver/Gold level, but I don't see it used very often on the Social floor.
That's a shame, because danced with a bit of style, it is one of those useful figures that varies the basic 123 waltz timing. My favourite amalgamation is to dance the Drag Hesitation, a Back Lock, 456 of a Hesitation Change, a Progressive Chasse to R, Back Whisk, Wing & Telemark. Dancing one side of a ballroom with very little rotation in the figures selected, and then returning up the other side with lots and lots of rotation, makes for variety and interest.