Framer you raise a good point. If Lionair copilots are not allowed to be pilot flying below 5000 feet as you appear to suggest, what on earth was he doing flying a non precision approach in poor weather? Although I am not a fan of captains doing all the landings, this accident does suggest why under certain circumstances it may be the least bad alternative.
Frankly even over here with a newish FO, (900 hours on type is about a year's experience at Lionair) I would have suggested under these conditions that it make more sense for the more experienced pilot to fly the approach.
This airline is definitely not one I would allow any of my family to use. 737 NGs have a pretty good safety record, but if you look at aircraft losses you come up with an interesting list of airlines. What it says about those airline's procedures, regulators and pilots you need to decide yourself. As I have droned on previously I hope the insurance industry will think hard about them too.