Certainly hunting intact hounds has been the ‘conventional wisdom’ over the years. But I would say not so much because it was thought that altered hounds wouldn’t hunt as well, more in my experience a function of kennel management. For example, a neutered hound kenneled with intact hounds might just bear the brunt of kennel fights. Another thing is the sheer expense of neutering so many year in and year out, most hunts I’ve hunted with would simply not have had the funds- feeding and basic health care has to come first.
However, I know of at least one hunt that neuters a good many of the dog hounds (including one that was named for me!). That one and his fellow eunuchs hunt just fine.
But- they have the kennel layout to be able to kennel neutered hounds apart from intact hounds.
I’ll observe that the same ‘prejudice’ extends to a whole lot of dog owners generally, even if the dogs are just pets. Guys in particular have a thing about it. Including members of my own family every time one goes for ‘brain surgery’ as my vet calls it. The guys are intellectually in agreement with it but still, um, uncomfortable and sympathetic at a certain level.
At the risk of straying a bit afield, I’d say that if the AKC started allowing neutered and spayed dogs to show and earn championships (just like geldings in AQHA halter, for example), it would go a long way toward changing some long held views.