I don't see anything wrong with team events, as long as they are optional. People should be encouraged to have interests outside of work. It promotes a healthy work/life balance, and discourages groupthink. The occasional team building event can be great for morale, but be respectful of people's obligations.

Your original post talked about relocating so team members could spend 7 days a week committed to the project. That goes far beyond a weekend BBQ.