This seems to have the allure of getting rid of all the MTT people who call with nothing and suck out on the river... like the whole "only good players, serious players" thing. But I don't see what is to stop just anyone from signing up for these "password protected" games, by signing up at this site first.
EDIT: It seems like this is another poker site who were too lazy to make software
so they just run their games on other sites private tourneys