You don't need to let your opponent "punch, retract their limb and move away". That is a point sparring mentality. Go in fast, make contact and stick to him, don't let him escape. The problem is not how opponent's move. The problem is that traditionalists try to play the opponent's game, letting them trade punches, and let them move and jump around.
In my younger yrs I never did this but then again I didnt know anything about taiji at the time. What I would do and did do was to make sure that what ever was offered was damaged and could not be used again. They might be able to bring it back but would not be able to use it again. After so much time with taiji, now with my own work I've modified this so that at the point of contact, what ever, where ever it might be their whole body is affected.
But the thing is that to work well with this, you need to be very relaxed and soft so your hands can attach to his arms like wet cloth. It requires a certain courage to get rid of the instinct to keep away the opponent's hands by tension and resisting. If you don't have a method to train to be very soft and relaxed in a non-compliant and un-rehearsed manner and actually practice it at least somewhat regularly, it will be very hard to make it work. I used to practice this very soft method in sparring against hard stylists form various styles as Karate, Hung Gar and MMA. It works perfectly fine.
as tactic unless one really has and understand "whole body" movement for most it ends up not good for them, the space offered is taken. There is no yin/yang change at the point of contact, they have no yang within yin, nor yin with yang. I use these terms to mean interchange of mind/body
As Willie, noted the timing for this can be extremely short, so short that it appears that nothing happened but the other gets thrown out.
Unless ones skill is highly developed quite hard to put into use, hence a high level skill that for many is not supported with low level basic skill sets.