At the end of the day, prisms can't be done in a trust less manner, right? The entity that's doing the prism payment splitting can ultimately rug the recipients? Is it at all possible to employ hodl invoices here to reduce the trust in the entity that's doing the prism payment splits?

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No, hodl invoices are also ruggable.

nostr:npub139nl9yxvwayl60fr97m3zrq9md6x5v0uup344mkyuyg6mzlusyxs4zkwf4 game me a cool idea a couple yesterday: route the payment through each recipient so that each recipient takes a routing fee of their split.

This introduces some new problems, such as every party must be online (but that is the nature of the whole payment becoming atomic, perhaps each party could wait to route until they hear back from the node, like Greenlight does)

But is less trusted for sure.

Ultimately, this type of problem is perhaps too costly to solve and the right solution is just accept the trade off and use as a prism trusted parties (which is part of the nature of Lightning)