Also the strategy to decrease range to disable her as fast as possible was logical.
At the end the British did attack with torpedoes and sunk her. How much earlier they should have done that? And why this would not have been an "punishment"?
Which advantage an undamaged Bismarck would have had vs. Rodney and King George V? She was still clearly outgunned. Why it should have been able to survive?
The victory of Bismarck and Prinz Eugen against Hood and Prince of Wales was mainly caused by design errors and/or unstable powder of one ship (Hood) and a not really functional ship (Prince of Wales, with severe problems with her main armament). I.e. it was easy. And still Bismarck had to abandon her mission because of the damage obtained.
Bismarck was a massively overrated ship - for which a combination of British and German propaganda is responsible. The British had a lot of reasons to exaggerate her strengths, because they have sunk her.