I also don't see much difference between this and just self funding a type rating - something that unfortunately lots of people seem to be doing anyway.
What I don't understand is why not do the selection before starting the rating like Ryanair does?
I mean if someone turns out to be useless on the type course or line training they could just get rid of them anyway - it's not like by doing it that way the company would be exposing itself to much more risk.