It's an interesting loophole to get around a completely sick and twisted part of Christian theology: that many innocents are damned just because they didn't accept Christ and baptism in their lifetimes.
Now, I personally think Christianity is hogwash, and I don't believe in Mormonism. But to be worried that some well-meaning Mormon descendent is going to retroactively make you Mormon after your death is pretty silly. If you don't believe in Mormonism then the proxy baptism is meaningless.
To me, it's just funny. But maybe not to Lutherans?
The practice isn't as cultist as some (gp) may want to imply without understanding what it implies and really means.
You are having some group of people you don't know say something about a dead relative followed by a ritual not based in any science to change which imaginary place they will be in.