I think the engineers that it is aimed at are the ones for which it will not add more pain: specifically, I gather that the entire idea is to have something that provides a useful input to a recruiting process (even if it doesn't completely replace, e.g., interviews, it ideally at least replaces coding tests in interviews with something simultaneously less tedious and more real-world) while actually being something interesting enough on its own to engineers that many of them, if it existed and wasn't tied to recruiting, would engage with it anyway for personal development and/or entertainment. (The name being a reference to The Last Starfighter sort of implies this: you play the game for fun, win, and someone drops out of the sky with a job offer doing what you were doing in the game, but in a non-game environment.)

Obviously, making this work requires both convincing hiring managers that it can replace at least some of the annoying technical parts of the hiring process, and developing engaging games that can engage, collectively, a sufficient pool of engineering talent. Sounds like the concern is that, to date, they may have focused too much on the latter and not enough on the former, but while that's a challenge, I don't think it has to be an insurmountable one.