I have a nuanced opinion here. The type of project funded this way matters and the amount it receives. For example, if a team of developers creates great quality open source code that can be (and is) integrated into various projects on Hive, or the core code, or if it funds critical infrastructure for Hive that isn't meant to be funded as a paid service, then I believe it's an ok way to access the DHF. If it's just a project like others, closed source, or not necessarily beneficial to the entire ecosystem, probably not.

Where I agree completely is that there isn't much incentive to finish a project for which you are paid "by the hour" and there isn't a strict accountability.