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I noticed they are soliciting reviews (read: links) to their site and paying for them:

http://www.pickydomains.com/make-money

...including a requirement that the site have a PageRank of 2. Is this consistent with Google policies or are they going to get dinged down the results because of this behavior?

They're small enough that unless a Googler puts in a manual penalty they're unlikely to get dinged.

Technically, they aren't asking for links, just reviews—definitely a gray area.

It would be a lot less suspect if they didn't require the blogger to have a PR 2. To me that just screams "I need backlinks!"

Kind of dark grey.

I recently named my android app and website through them. It was quite a straightforward and pleasant experience.

Similar to http://BootName.com

PickyDomains – Risk-Free Naming Service