I think the issue here is also who is posting the job. If this was a job listing for some unknown company in a business park, who cares.

But Penny Arcade are a highly visible and admired (by some, obviously not all) brand, and it feels like they are abusing this position when hiring for this gig.

Your point about making your own bed is valid for sure, but I think some people will overlook this with the "oh man I'd love to work at Penny Arcade" excitement, and I think PA is counting on that.