Is the restaurant claiming all review systems are broken? Do the owners ever read reviews on Amazon or the general web? I don't think you should throw the baby out with the bathwater.
No, in the article it clearly states that the owners are getting "blackmailed" by Yelp and have decided to retaliate, but otherwise think it (I assume a rating website) is actually a good idea.
Edit: my apologies for any snark above, I just realized that the article I was referencing was the one posted by jedberg.
The restaurant might not be, but I will claim something close to that: all aggregated-score-oriented (e.g., number/star) review systems that aren't centrally based on some reasonable measure of the the individual user's trust/affinity with each individual reviewer presented are fundamentally broken, just because reviews are subjective and without accounting for taste similarity, other people's subjective ratings are useless (individual text reviews have a similar problem, but at least well written ones will report information from which one might infer the basis of the opinion and get some utility from a review by someone with different tastes.)
