Just to clear up a couple of points.
Holland DID use his cruisers, they exchanged fire with Hipper. Obviously this all stopped once Hood was sunk.
Attacking Bismark at 2-1 odds (with 2 cruisers able to keep Hipper occupied), even if there are issues with both your ships, is good odds. No RN Admiral would have held back (although there are doubts about Hollands dispositions).
In this case however, the odds in capital ships is even, and Holland knows he has issues with both his big ships. His obvious course of action is a night attack from the air. The FAA had trained for this, and Holland knows that if he only damages one ship then the whole game tilts heavily in his direction. Even if they achieve no hits, he iasnt any worse off.
I dont know what his orders would have been in this instance - the RN gave a lot of freedom of action to its Admirals, but they did have orders and rules to obey unless they had a good reason not to.
One thing youve missed is that Churchill and Pound will (unfortunately) be interrfering, or trying to....
As to demanding action - the PoW kept shadowing Bismark, and made no attempt to engage after the Hood was sunk. Yet if the idea of the RN was to engage at all odds, she would have done so.. She didnt, and her captain was strongtly supported by CinC Home Fleet for NOT engaging when he didnt have to.
As for the RN not expecting much of the carrier -despite all the myths about a non-air-minded RN, this is just that, a myth. The RN concluded that until KGV and PoW were ready, the only way of stopping a breakout by the Bismark was - an aircraft carrier....!
They are going to use Glorious to attack, it isnt a spur of the moment thing its the expected way of slowing the enemy down (sinking would be lovely, but they will settle for slowing them, then mobbing them under. The RN doesnt fight fair when it doesnt have to (despite Hollywood
)