Deals like this are BAD for fantasy leagues. I personally never want to be a part of one of them.
I've heard this before, and personally I just don't get the philosophy. All fantasy leagues have winners and losers, bad teams and good teams, and a handful in the middle of the pack. Rarely do you see a league where every single team is right around .500.
So how do leagues get that way? Through good and bad decisions... whether it be via drafting, add/drops, or trades. If EVERY person in the league is a complete moron, yeah it wouldn't be any fun. But it's kind of "pie in the sky" to think that every single player is always going to do the smart thing. Maybe they're desperate to fill a particular position. Maybe they think there's untapped potential for certain players. Or maybe they just hate the guy they're trading. That's life, and that's sports.
There are smart and dumb owners, managers, and coaches in pro sports too. Why should fantasy be so different? The other guy offered it. The commish didn't veto it. Don't be guilty. Be happy, and move on. Just don't complain when the next team comes along and fleeces him!