So many startup folks are attracted to these kinds of programs because I think they mimic the illusion of safety that school offered. You have to be "accepted" and it's not a venture but a "program". Everything is geared towards creating this sense of safety without pointing out you are giving up a lot for it. Know why these programs want to save you the hassle of doing your own incorporation paperwork that took me a day to figure out when I was a teenager? Because they have to put clauses in that will help them, not you.
Again, I'm not saying these ventures are sinister. But you can get by without them and in fact may become a better business person for it.
Google the history of Spinway, bankruptcy, then sold, Peerflix-a VC fire sale, Bryght-private sale for loss then shut down.
Perhaps a bit unprofessional, but I'm personally glad it happens. The startup/VC world is all about reputation, and anything which moves the world from "talk to your friends at other startups and find out if they know anything about X" to "google for X and find out what people are saying about it" is a good thing for startups who are less than fully connected in the gossip network. Think of this as the natural continuation of what thefunded started.
Of course, as a Vancouverite I'm sad that it's Bootup Labs which is getting a bad reputation like this. :-/