His criticism is that The Blacklist is built on the idea that their are shit loads (hundreds of thousands, millions?) of really crappy scripts written every year by people with a dream. These dreamers are a lucrative business for many service providers in Hollywood. It's not that no service is provided in exchange for the money paid, but when you offer a service which explicitly sells the dream (when the reality is that a miniscule percentage actually "make it") then that is what is smarmy.

That said, I don't personally have a problem with it myself, mostly because you are getting something for your money. You'd almost certainly be better off going about things differently (sitting around waiting for Hollywood to call just because you put your script on The Blacklist--or anywhere--is a distinctly ineffective strategy).