The hole is for crap. If an editor thinks a diary is crap, it may be moved to the hole. If you think your diary is crap, or don't want it Archived, post it to the hole. If you want to rant and rave and blow off steam, the Hole is an appropriate place to do so. If your diary is placed in the Hole by an editor, best to figure out why, rather than whine about it and complain.
HuSi Archives all stories, diaries and comments after about 3 months. However, stories in The Hole are never archived, they are simply deleted.
See Archived Stories.