Ok, for most of us this is something we would to get involved with and be critical of, and rightly so
However, there are bands out there you just want to play live and don't get much chance and can't organise it themselves, so if this works for them and gives them a good night, along with their mates who will come and watch, then everyone gets something out of it. But there is great risk involved it could be naff. The fact that if it goes well they won't share any profit with any bands is a different issue I think.
There are a few teen bands I know of that would benefit from this type of set up, they maybe being used, but they'll get to play, with little risk if they don't pull it off that well.