From a designer's point of view yes; just because it doesn't really matter to Bob's Plumbing whether they get the logo done cheaply by their local print shop or get 30 designs by Filipino teenagers doesn't mean their local print shop is going to be delighted at the loss of £200 revenue and a chance to upsell some business cards. Especially not when the site purports to be encouraging an "enterprise-led recovery" for the economy

They also might take exception to the notion that race-to-the-bottom logo work fits under the site's "creating a brand" heading; 99designs is exactly the resource for businesses where visual branding doesn't matter much (which in fairness is a lot of them).