I believe that is an extreme and cartoonish conclusion to draw from so little information. How do you know that is the experience the children have?

The sister comment from another teacher brings facts to the table that explain the intent of the exercise, which is limited in scope and aimed for a specific purpose. Good or bad it is a game to attempt to teach kids it is ok to admit they don't know and to ask for help from their peers. If you consider how often and how ennervating it is when our adult colleagues can't admit not knowing, I think you can understand why someone crafted this exercise.