You hold a tea-cup in exactly the same way as you hold a coffee cup.
An espresso cup is pretty small, but you wouldn't stick your little finger out.
Possibly this was the custom a few hundred years ago, but it certainly isn't "done" nowadays.

Oh, the whole thing I wrote was tongue in cheek. And that is not easy while sipping tea!

I'm English and I've been to these things twice in my life, and I'm not ashamed to admit I enjoyed them! On the other hand...I wasn't paying. I don't think I'd bother forking out for it myself.
1) claridges - this was the best one as the staff were dressed in 18th century style livery, it was all very comfy antique (looking) sofas and furniture, plenty of space and the food and tea was wonderful. A really enjoyable hour or so.
2) Ritz, not so impressive, cramped dining room, food was still nice, but didn't have quite the same atmosphere.

I don't mean to turn philosophical, but the question that is really being asked is how much are you willing to pay for something. Each of us everyday evaluate what something is worth to us. We pay certain sums for trips that others may think is crazy. I've read numerous posts on this website on how much people are willing to pay for airline tixs, hotels, restaurants, etc. Some can't see the value of a meal being over a nominal sum, while others are willing to pay quite a bit for the experience, food, etc.

While I may not be willing to pay a huge sum for X or Y, I can understand why someone else would, because I am willing to pay a high price for A or B. As long as its worth it to that person, I say go for it.