whifferdill
Line Up and Wait
Honestly, for me that simply means that at that point the controls are in the neutral position and you are in coordinated flight. Now how you get them there I'm not sure what you are thinking. You don't just let go of them, you return to neutral and exit the slip with the same coordination you entered it. If it's a side slip you are going to keep the heading constant as it says in the side text.
You exit the slip you are in, and then apply slipping turn inputs in the opposite direction. THEN you neutralize the controls and continue on your way, tracking the runway. It's so easy to go up and do this stuff.
But I think you hinted that the main problem here - that the picture is misleading at best, and IMO incorrect at worst.
You're certainly entitled to your opinion on that and I disagree. I think they are good exercises for students as they clearly demonstrate the nuances of different aircraft in cross control configuration. In a Champ or Cub for instance when you move the stick to the left without moving the rudder the first thing that is going to happen is you're gonna start turning right due to the extreme adverse yaw in those designs so to prevent that and hold heading you first have to apply left rudder then as you increase aileron you gradually feed in right rudder. You do this back and forth gracefully passing through neutral while keeping the compass dead on heading with precision. It's not a yank and bank exercise so maybe it would bore you to tears but hey, just give it a try, it's not as easy as it sounds to keep that heading dead nuts on.
I understand adverse yaw. I learned to fly in a Champ. You are describing a type of "dutch roll" exercise. I like those. Done them plenty. Different from the runway drill, though.