So Moses and Elijah were in Hades but they came out for a little while to chat with Jesus on the mountain at the transfiguration? Just want to be clear on your thinking here.

Be careful – when your snark reveals the fact that this isn’t about ‘understanding’, but rather, about ‘ridiculing’, it’s a lot more difficult to take you seriously.

(Trust me – I’ve been there; I know…)
Here’s the thing: In the days before the concept of ‘eternal bliss’ or ‘eternal punishment’ was revealed by God, people understood death to be the end – period. Therefore, the notion of the ‘abode of the dead’ – Hades, or Sheol, or whatever – was used to describe ‘where’ the souls of people went once they’d died. That’s already a problematic assertion: we all know
where the corpse is, but what about the notion of ‘whereness’ for a soul? Nevertheless, the notion of an abode of the dead is a helpful one in coming to terms with an understanding of human existence following physical death.
Later, the Israelites started to become aware that there wasn’t just an undifferentiated final destination, but rather, there was a distinction between eternal bliss and eternal punishment. From a historical perspective, the notion of the ‘bosom of Abraham’ developed at this point. In this context, the notion wasn’t that people were in ‘heaven’ (or, more to the point, eternally in the presence of God), but rather, that there was an eternal resting place that was a place of comfort and happiness. However, as language use tends to go, the old categories – Hades / Sheol – continued to be used when making an undifferentiated description of post-death reality.
Now, to your snark: no, it doesn’t stretch the imagination to think of a ‘good part of Hades’ and a ‘bad part of Hades’. In fact, all you’re doing in this case is being anachronistic, using a more archaic term in order to make fun of a later eschatological understanding. And, no, it doesn’t stretch the imagination to presume that those in the ‘bosom of Abraham’ might appear in the Transfiguration: after all, their appearance was an instance of an eternal reality being witnessed in our space/time. Does that mean that Moses and Elijah were given a free afternoon to ‘pop off to earth’? That’s just silly; do you really want a serious answer to an attempt at ridicule? Again, your assertion that saying that Moses and Elijah were ‘in bonds’ means that they were in eternal punishment is a crass misunderstanding. Rather, it means that they – who were just, and were awaiting Christ’s salvific sacrifice – were in bondage only inasmuch as they weren’t yet in heaven. It doesn’t imply that they were in hell.
And, let’s talk about the notion of time. We seem to conflating the issues of ‘consciousness’ and ‘space/time’ in this thread; the two are not equivalent. In our physical bodies, our consciousness is intimately intertwined with our temporal/spatial existence and experience. However, if we exist – as souls – without spatial extension, how can we understand temporal extension in that context? Does that mean, then, that we have no consciousness? I would think not. (Rather, it might be akin to the feeling of “being in the zone” – we’re so intensely in the moment, that we do not notice the passage of time.) I think that the Catholics who suggest that there’s instantaneous realization (whoops! I’m in the Bosom of Abraham! Whoops! I’m immediately in Heaven!) aren’t quite on the right track, either… but that doesn’t give you carte blanche to presume that arguments against temporal extension are therefore arguments against consciousness!
Finally, with respect to the “corpses walking around Jerusalem” thing: I would assert that your Scriptural exegesis is faulty. One interpretation of Matthew’s statements is that there were dead people walking around Jerusalem on Good Friday. However, that’s a rather naive reading and requires us to make a whole boatload of assumptions that aren’t really forced upon us by the text. After all, the narrative of the crucifixion is put on hold in verse 53 – we move from the events of Good Friday to events “after his resurrection”! And then, in verse 54, we’re back at the foot of the cross! So, I ask you: what does it mean that “bodies… were raised” in the context of a moment when “the earth quaked” and “rocks were split”? What is “the holy city”? (Hint: is it necessarily Jerusalem, or could it be the heavenly city?) You see, to buy into your skepticism, we have to accept your interpretation of Matthew 27:51-53. I don’t; therefore, your presumptions have no real argumentative force.
But my post back to you included the question about good people who died in other parts of the world, like China and South America, who had never heard of Jesus. Did they go to Hades when they died too?
Of course: Hades was the place where all the dead souls ended up – when there was the notion of undifferentiated eternity. Later, Christians believed that good people, born before the Incarnation, were able to attain to heaven. I’m presuming that’s where you’re going with this. Don’t worry… we’ve already got it figured out…
