I'm not knocking it. My parents didn't use licensed daycare for preschool for me or my sister. Just dropped us off at some old lady's house and paid her cash for watching us. 99% of arrangements like that work out fine. It may be suboptimal, but usually it's at least fine.
I'm actually wondering if the program will make a big dent though. One issue with formal childcare arrangements is that the hours tend to not be flexible. Parents who have to work til 6 some nights, or who have nontraditional work schedules in general may not be better served by the state's option.