This is really no different from the HR filters many large companies have that result in people asking questions like "I see you have 6 years of Java experience. Do you have any J2SE experience?". The only possible difference is weighting of criteria and I'm not convinced HR departments don't do that already.
So, fail.
You're the one creating the criteria and determining the weighting, so if the system excludes people because they don't have J2SE experience it's only because you put it on the list and made it extremely important.
I've been going through dozens of iOS and webdev resumes a week and about two in three have the right keywords. Their skills don't correlate strongly with those keywords. What has gotten dramatically better results for me has been this: put programmers through some automated programming tests (kind of like an in house version of interviewstreet.com), and filter any graphic artists / designer entirely based off of their portfolios.
That has quickly weeded out those who can't code (or design).
And you're right about designers - I look at portfolios more than anything else. This system does save me having to look at resumes to figure out whether they have a portfolio or not. It at least weeds out that third :)