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No, I don't think I would either.
it is pretty ridiculous but you know that some naive bands will sign up because they think it'll really get them some exposure.
I worked on a mag that did covermounts with unsigned bands and signed bands. We didn't charge any of them and incurred the costs ourselves (or if signed, the label paid through advertising). The only thing we did was make sure they waived the MCPS rights for that recording of the track ONLY for our comp, as MCPS can back claim for any acts that sign with them. Mag doesn't exist anymore. Lesson learnt.
I do product placement for film and tv. So I'm one of the bad guys. *sigh*
how the magazine gives up and says they can do it for free
good on Male Bonding for not fooling for their shit