Sounds to me like it's a load of bullcrap and that site won't be around for very long. My invite hasn't come through yet so I can only go by what I read here but... like BlakjeKaas said, nothing is free. A site that "gives" away stuff for points that you earn in a 2D arcade game can't work unless they get a considerable income, and the guys running that site will sure as hell not be paying that stuff out of their own pocket. So either it's a scam or there's a catch. Like "sign up for only $9.99 and get xxxxxxx ". You won't see that now, obviously. First they need to get the hype going - which they seem to be successful at - and get sufficient idiots erhm... I mean members signing up.
Since most of the prizes cost quite a lot of points and are currently only available in the US, it's unlikely that anyone will have saved up enough to get something yet.
What worries me is that they'll have very limited stock. GameTrailers does a similar thing now, although they make you use your points to bid. But there's only ever like 2 of the thing you're bidding on so 99% of the time the ones they're touting are at crazy numbers.
I almost have enough PTZ for the Guitar Hero 5 bundles. Of course, it's impossible to get anything while they have nothing in stock. I complained about that to them a while ago, that we're answering market research questions and getting nothing in return. Hopefully they'll actually add some stuff soon.
Then I'll have to decide which version of GH5 to go for