I hate to say it...but I agree. That really pains me to say because I wish there were opportunities like this beyond a typical PhD program. The concept is great. But this doesn't seem like the best implementation of that concept.
It does feel like there are more questions than answers here. What are the differences between full "members" and "affiliates"? Why aren't there more recognizable names behind this? I don't see a celebrity research behind this, so to speak, and that is precisely the kind of person I think you should get to start this kind of organization.
I also don't understand what "decentralized Bell Labs" is supposed to mean. The monetary funding is clearly centralized under one organization, so do they just mean the researchers won't literally be physically colocated? Is that meaningful enough a differentiater to highlight it? I can't think of a single industrial lab that has researchers who work in isolation with mentorship here and there. Didn't we try this with the Thiel Fellowship already?
However I don't think this is shady, and I think that's an uncharitable way to interpret it. It looks like the members' credentials are legitimate. The problem I have is that there doesn't seem to be a top researcher with tour de force accomplishments backing it. That probably sounds prejudiced, but I consider it a negative signal that there are no such researchers who were even willing to affiliate their names, let alone their guidance to the project.