$10 Logos - good or bad?

Launched in 2004, Squarespace has become one of the world's many online website builders.   Despite providing an automated alternative to employing a professional web designer, the company's keen attention to design principles and responsible attitude to web standards meant it's still managed to maintain a fairly good reputation among the design industry.

Launching a new service called Squarespace Logo, they have decided to apply the same thinking to logo design, here we had a play on it and produced the below:
(BTW- Pants was not a reference to a new Hip Clothing outlet or for that matter a sneaky swipe at this particular service).

Aimed at the business or individual who can't afford the services of a professional designer the tool is said to, "help anyone design a simple logo themselves".
We have to admit that the online software was so easy to use, with some great resources available packaged in a slick looking interface.  Possibly most significantly was the price $10 for a high res logo- aimed at the cash-strapped or thrifty!

It has come in for much criticism from some corners of the design industry, with others backing it -as more than likely, if a client only wishes to spend $10 on their identity, they do not understand the value of engaging with a design professional to develop a unique brand for them.  

We are interested in hearing your opinion, will the development of these types of software save design professionals the grief of working with clients who do not truly value their design input, or is it a step too far- devaluing the work that we do?

Give us your opinion, no need to be Brief...