This is sort of like the domain-squatter's equivalent of department store mannequins: visual aids that help shoppers picture what the items could look like in practice, sparking their imaginations, and thereby convincing them to buy. In this case, the logos are really just giveaways to sell visually and tangibly what would otherwise be abstract names. Again: it's kind of a stroke of genius, but it's a stroke of genius in a questionable profession.
So I end up with very mixed feelings here. Kudos to this guy for innovating, and for doing a good job at it. But I fear the rise of a second domain-squatting gold rush, when/if a bunch of squatters copy this model en masse and set up squat + design sweatshops to crank them out.