I think that saying it's a "fraud" is too much, but the match (for which I don't qualify this year, anyhow) and the challenge eligibility is opaque. First apply. Then JetBlue decides if they will accept you for a challenge. This is a way for JetBlue to control the supply of Mosaic status, but since Mosaic offers so few ongoing tangible flight-experience benefits besides earlier boarding (e.g., no pgrades to EMS if available at check-in, etc.) I don't get why the throttle on the challenge is established where it is.
Giving immediate match to high-tier elite flyers makes sense. The fact that the other members can apply to participate in the challenge but can be rejected for some opaque reason does not encourage lower-tier FFs (or no-status newbies) to shift or begin to book on B6.
Flyers who already are planning travel during what would be the 90-day challenge period would be foolish to do so on B6 if they already have any kind of status on competing carriers. You have to wait to be accepted on the basis of unknown criteria.
B6 is rationing the Mosaic status for reasons best known to itself, but it apparently is not to attract new pax from other carriers. With AirTran replaced with SW, there's a chance to grab the AirTran Elites who will inherit SW A+ status. I'm talking regular business flyers, not the 2x/year leisure pax.
For transcon B6 might be wise to invite lower-tier status members on other carriers to submit those credentials at the time they open up the challenge to all of its TrueBlue members. In that way they encourage participation, and if they are going to cherry-pick, at least they are going for some more likely "we'll reward you with status; you'll reward us with more purchases" pax.
The challenge itself is not complex, but getting into it is a big question mark. Apply, sit around and wait, and get told. Maybe get told "never mind." So as concerns bothering with something that's set up as a game before the game has begun . . . never mind.