Yes obviously, it still has its draw backs as the influx of ether will eventually slow down. But its a cool concept as far as ponzi schemes are concerned.
I thought those smart contract pyramids were pretty cool too. I put 3 ETH into that one quite a while ago and have already gotten my 2.9x payout. It's pretty cool that a contract can run like that across computers all over the world, and make a fair "pyramid scheme." I'm looking forward to the different types of smart contracts that people will develop, especially in the gambling scene.