Most passengers only concern themselves with the price they have paid for their ticket, and that the flight arrives on time. Safety, maintenance and training are something of a given (and rightly so) in most peoples minds. I am afraid that "merit and hard work" are not enough in themselves to ensure the best chance of success, however they will also be required.
Flying is expensive, and if you want the best chance of an airline career with only 250 hours, it is very expensive!
Unless this airline has no intention or ability to fulfil the terms of the contract I very much doubt it is a scam. You (and others) may not think much of it, but not a scam.
If you drive up the road to your local airport you will see a lot of blue, yellow and white airliners owned by a locally based company. This airline was one of the pioneers in driving down input costs in the European airline marketplace. The vocal CEO of this company has made no secret of his desire to eliminate the F/O's role. If he can't do this, he doesn't see why cabin crew can't carry out the role as part of their duties. Failing that he doesn't see why people shouldn't pay as much as they are prepared to, in order for the chance to carry out the function. So far, the regulators have only not baulked at the final suggestion.
Competition can only remain as competition if they also reduce their own input costs. The answer for less "vocal" companies has been to seek out cost savings and flexibility through the controlled expansion of these cadet schemes. The risk falls on the applicants. It is expensive.
P.S. For those of you so contemptuous of "Daddy's money" it shouldn't be forgotten how much of that got you through the first two decades of your lives, in most cases. When you become "Daddy's" yourselves, you will understand.