While I don't completely disagree with you, I think his chances of success are better than spending x amount of time applying for jobs trying to get an interview.
I don't recall which company, but in the last two weeks, one of the big name startups put out a competition to solve a problem regarding log file parsing. It was an opportunity, basically, to get a job with them. Now, with this approach, the OP might be competing with thousands of others - and his chances of standing out are reduced. He's taken the inverse approach, and HE can pick the challenges he wishes to solve, with same end goal: income.
It's not unique - it's what a lot of driven people have done in the past to get in the door somewhere.