I think the idea itself is fine... though it is just milking us more, its still a company and they have to make money so not that surprised. What I am not fine with is that there will be novels doing less mass releases or reducing their current release rates to stockpile more chapters because of this.
Do not bother saying this will not happen. Because it already is happening. I find it quite the coincidence that The Legendary Mechanic suddenly went from 13 chapters a week to 7 a week 1-2 weeks ago. Consider my words empty if they do not jump in on this new system... but the the signs are there that they simply heard of this new model and started harming their normal release rate to stockpile more chapters just so they can jump in on this new system too.
That is kind of were I draw the line. That said I am still a sucker for the novel and will probably end up paying anyway. But that doesn't make me feel less abused.