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I like the fact that they're so blatant in what they're doing. The issue is that I don't think that their links will have any credibility: if you aren't sure that someone's saying good things because they might be a shill or might be legitimately discussing a product, you're bound to become skeptical, right?
The other issue: $10/entry is chickenfeed. If I am going to be a shill, I want to get paid more since they're ostensibly buying my credibility, and I bet you would want to get paid more too.
Instead, remember that one way to monetize your weblog is to build up a strong reputation then approach potential advertisers directly. I'll tell you that I've gotten much more expensive gadgets by contacting the companies and telling them I want to write about their stuff. Oh, and I always disclose that too, with a "XX was kind enough to send along a ..." or similar.
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