Whether that is good or bad is a different question
Whether they are being honest about it is a different question
Whether they should inform people / people should inform themselves is a different question
But I see the perverse incentives as a problem, and the the misleading behavior as another the problem...the incentive is universal in any platform that has to pay for the content it hosts, and while folks may be okay with this one, whats the limit? If they really stood behind this they would be transparent 'here I'm playing you music created by spotify to fill your home with generic low-engagement sound. The fact that they are obfuscating it is telling.