I'm not going to argue here, but I will answer this:
What is your opinion on some of the other funds (such as Starfish BCB), which appear legitimate, yet still pay bookoos more than any other IRL fund?
The reason they can offer that much is simple:
They charge borrowers 1-1.5% per day/3-4% per week/10-15% per month. They get plenty of business, too.
Don't take my word for it though, you can check out Hashking's thread
for yourself. When he started out he announced his lending activities publicly, and many of his depositors announced their contributions publicly as well. He used to keep his books public as well, but I no longer see them listed anywhere =\. You might ask him about it.