Just going from memory - but I’m fairly sure that around 25 to 30 years ago, in Australia, it did work the way that is being described. That is, the person receiving the call could not disconnect the call by hanging up. The person making the call needed to hang up, otherwise the line stayed open. I messed around with this a few times because I was amazed it existed.
Editing to add that more detail, since I’m basically contradicting your memory of how it worked:
I’m fairly certain it didn’t work if you dialled out, so you may not have come across the circumstances to test it. Also, the other person would probably also need to be participating in testing it, because otherwise they will hang up as soon as you do.
I’ve just remembered another detail - I think there was something different about the tone you heard. If you received a call, and the other person hung up, you would hear the disconnected beeps. If you made a call, and the recipient hung up, I think you would hear the disconnection, but then just silenced.
By the way - I was also confused by seeing how phones seemed to work in the US - like pushing the hang up sensors (is there a name for these?) once to switch lines for call waiting. I never really connected their strange behaviour with how the phones in Aussie worked.
Actually, is this all related to party lines? I’m fairly sure Aussie had these. NZ did.