Given that the program was not designed for PPP members to fly at existing sites, but rather to create new clubs with flying rights at smaller venues, I think it's neither good nor bad. (With perhaps the exception of needing to better educate PPP members as to the purpose of the program.

For a club with specific requirements, either in their bylaws or their land agreement, to turn away flyers who don't meet those requirement isn't "bad". They have to. It would be just as "bad" for them to turn away a non-AMA member who had the requisite amount of insurance coverage through another provider.