That is going to be on an individual basis. You can apply for an entry level position with a resume that says "Voted Most likely to hangglide in high school" and "Shaved roast beef with precision at Arby's for six months" or you can put those AND "Attended Modern Labor Development Bootcamp" and reference the 15-20 production projects you contributed to and show examples of your work.
Your comparison doesn't make sense. If someone, who is applying for a tech job, includes anything else but tech related experiences in his/her resume, then the person is very likely not to be selected. This is a known way of presenting your resume -- show only relevant experiences to the job applied. Though, this also enable another issue where people exaggerate their experiences/skills to look better than their real ones.
You can self study or you can do Khan's but a boot camp which includes actual inbound for profit tasks is probably going to be more efficient.
That is not the case here, at least for now. From TFA -- "Although people enrolled in Modern Labor’s income sharing agreement are not working on projects that directly benefit the company or its clients, Larson said, the company isn’t ruling that out for the future." The projects/tasks that they have been on may or may not be as good as they attempt to advertise. They don't disclose them in detail for now, so I can't say anything more about it.
To me, the overall looks good, but that is the whole marketing ploy of this type of TFA -- advertising. Everything they have in TFA is all about advantages of itself over others (including traditional way). There would never be any real disadvantages to join the company. From what I see, the company just hopes that it will become something like a training facilities for other tech companies in the future (a business type that no one yet is successful).
Well, it is still new, so people don't really see what can go wrong in the future (which it will). One thing I already see that it could be a big problem in the future is that they aren't teaching about a correct concept to solve a problem but rather how to copy-and-paste working codes. Most anyone can code, but that doesn't mean the code quality (including the way to solve a problem) would be the same...