It's pretty neat! It's not really a model, though. I DO think the FAA should be looking at that, not the AMA.
The bottom line to me is that I don't think the AMA insurance should have anything to do with a 300 pound aircraft. I have NO problem with people building them, I just don't want to pay to insure them!

As far as "this guy should just do a home-built", well, that's apples and oranges. Building something you are actually going to climb into is a different story altogether. That knowlege, that you could DIE if you don't do it right, makes you do things very differently than you would in a model, even a 300 pound one.
And models are just DIFFERENT from full scale. I like models BETTER!
I think it's a free country, you can build whatever you want, you just may have to deal with the appropriate authorities(the FAA) if you build something this big.
I don't think it's rediculous, it's not for me, but it must float that other guy's boat, or he would not have done it!