I've heard that the papaya/pineapple is supposed to help break up the mucous in the stomach so that it is easier to pass the hair, not necessarily to actually digest the hair. I could be wrong though!
I also thought it was good to see hair coming out because then it is not staying in. But if the bracelets aren't supposed to be a good thing, then what is supposed to happen to the hair? I know rabbits don't digest hair, so what happens? It gets ground up in the poop, but not strung together?