Sucks for the dj's who have been around a while and have been making money off of it as a job .... then again, not all dj's who have been around a while are good....and sometimes, being a friend of some teacher / owner / band member gives you certain priveledges that can overshadow actual talent.
Cool for the new guys who maybe don't have many connections and could actually be good .... unfortunately, a person's ego doesn't usually match their actual capabilities (as is often exemplified on X-factor / American Idol tryouts), so I'm going to say this is a good business strategy in the economic sense, but not very good one from a quality standpoint, and definitely not when stepping on veteran dj's toes - but there could be a possibility that we get some talented dj's in the long run (optimistically). Yes, the old system of dj'ing as a job is taking a back seat for a moment, once again, based on the amount of information (music) readily available on the internet.....kind of curious how this goes in the next few years.
Personally - and again, this is just me - I'm as tired of hearing downloaded, low-quality, crappy-rare music that alot of dj's play nowadays (or the supposed music collectors who pride themselves in showing off all these mp3's they have in their collections - just look around at home many stupid collector blogs exist by mp3 collectors) as I am of seeing dancers all do the same patterns and same turns and try and dance exactly like teacher-X or Performer-Y. All of this is a sign of the times, I guess - a lack of originality or creativity. Even junk that is available for "legal" download or "legal" purchase on cd is often-times of horrible quality. Unfortunately, most people don't know any better and just don't care......people are too concerned about themselves and their images and their popularity and their ego to be overly concerned about quality. Esp. b/c, as someone else pointed out here, it might mean sometimes taking yourself out of a race that you are just not qualified to compete in to be able to see a quality performance.....
*sigh*