I don't think there's anything wrong with what this guy is doing, he's clearly not going to make much money off of this. I personally believe that the gp2x is in fact very difficult to use for most people... but I'm not sure that this CD will help very much. Figuring out how to get the right additional files needed and where to put them and how to configure and run the apps is most of the difficulty, not downloading the original apps and unzipping them.
I dream of a day when there will be a lot of high-quality self-documenting click-and-play ports and homebrew for the gp2x. A CD of that stuff, so you really can say "just put this on your gp2x and you get a lot of ready-to-run great stuff", would be very useful for people who are not so much interested in README files and techie details but just want to play some games. That doesn't help with emulators, but emulators are not the only reason to get a gp2x. I have never even tried one, as the only console games I own are for the GameCube.
But regarding emulators, something that would be interesting would be a program that you could point at a ROM and it would automatically figure out exactly what had to be done to it and stuff it in the appropriate spot on a SD card or explain why it can't be done (I gather that sometimes they have to be converted from one format to another and sometimes they have to be in specific folders and sometimes they don't work at all). Like a RomzForDummiez type of thing. Probably written for Windows, as the Dummiez are probably using Windows.
Of course, those people are probably all off dealing with the latest virus infestation that they contracted from the gp2x community anyway so might be too busy.