This guy has apparently done something similar in the past, and raised $8000 or so for some foundation doing the same type of thing. Marketing ploy or not, it's not like vgm does that great as far as sales are concerned anyway.
As far as selling something original, that doesn't really work either. It's not like anybody can record a piano album and sell CDs just because it's for some good cause. The fact that they are arrangements of videogame music may be the only selling point the CD has (for people like you and me). I doubt he'd fare very well recording piano arrangements of mainstream classical music and marketing it to the mainstream classical audience.
Also, not buying a fan CD because "Overlocked remix has better arrangements" is also a very poor attitude to have. I think it's important to support artists who are putting their time and effort into creating (or arranging) something for you and I to listen to and enjoy. It's that kind of crappy attitude towards videogame arranging that makes it hard for OneUp Studios and KFSS Studios to put out well-polished products. If it really comes down to, "Why pay for something I can get for free elsewhere," why buy any game music for that matter? To support the musician and/or the game developer maybe? Arranging/remixing isn't easy, and I don't see why they don't deserve some sort of compensation for their time and effort if it's good work, regardless of there being "better and free" stuff out there.
Oh, and "keep the profits for yourself and your record company like a real musician." I guess means videogame composers not real musicians because they are paid a single salary for their work, which then becomes property of the developer. They're not making profits off their CD sales, so I guess they're not real musicians. Yeah, I hope they stop making those Premium Arrange CDs and just write something original, like real musicians, because I can get great remixes on OCR! Sugiyama, stop with the symphonic suite albums already and do something original!
I'm just giving you a hard time, and I know you weren't taking it to that extreme, but that really is a silly thing to say. If you're so against it, don't buy it. No reason to bitch and moan about it as long as it's not deceptive and actually benefits all parties involved.