Shame on them. And shame on AOL for partnering with them. Well the website does not allow the public to add new records. You can only modify existing records. Now, the press release did not go into details of the partnership, It may be that ArrangeOnline will accept new records from AOL members, but obviously with a fee.
Genealogists are meticulous about finding out the source of information.
ArrangeOnline is running the risk of getting a bad first impression, and compounded by the fact that they have pitted themselves in front of the largest online audience. Seems pretty silly to me. I can't imagine AOL paying a dime for such a piece of junk. I think you're right that even semiserious genealogists will run from this site as soon as they see that it really is nothing special. But I imagine that enough casual folks will be duped into buying a memorial in order to keep these jokers encouraged.