The alternative to stuff like this is Yehuda Katz writing code for some startup that you will never see. Here's Katz finding a way to make a business out of writing open source...
... and this is a bad thing? What's wrong with you?
I myself struggle with the concept of asking $25k to build what he wants to build. But at the end of the day what I think doesn't matter what I think or how many people disagree. If enough people agree with him and support him, then the project will happen. If you don't like the idea, just don't give your money. If you are worried this attitude becomes a trend then be active and release your stuff differently.
Are you of the opinion that people should only be paid to do things that they don't want to do?
(not that I disagree with this project or method, I think he should do the same as what Google Appengine does with its installer - it is seriously awesome)