I think it is GREAT!
My old club (#288) in Indiana has a simular system. Not as strict but you had to solo to fly alone. My current club (#995) refuses to impliment any qualification system. I guess someone will have to crash and cause injury or property damage before it will be viewed as important.

I can't tell you how many times I have grounded a new pilot because the LHS sold him a plane and told him where the field was. No AMA, No prior experence, but because others make it look easy, he can do it.

I had a guy get mad because he could not fly a plane using a buddy box. He was all over the fleld. He would always say: "I use to race go carts so I know what to do!" (***?) Then he would say it was the buddy box and me standing next to him that made him nervious. He got another guy to take him up with the same results. He finally came out when no one was there and crashed his plane!