From an outside perspective, not knowing anything else about the site, it's not idiotic. Satoshi Circle did it and I visited their site. Now Ice-Dice did it. Would you have rather they just didn't give away .005 at all? Even with the 1.5 BTC limit still imposed, would that make you satisfied?
They never gave 0.005 away, so that question has no meaning. But if they never had promoted this, in the way it was promoted, this thread would've never existed.