Reasons why I think this was a horrible idea:
1(and the main reason). It makes it harder to become discovered if you aren't already a top streamer, as the common league player will now just go to leagueoflegends.com instead of own3d or twitch. You can only join this program if you have 1m viewer minutes/month, which means if you aren't already established, good luck getting there. Doubles the salary of 10 popular streamers, kills the hope of making a salary for hundreds.
2. The policy about not being able to show anything related to non-riot games is too strict. This takes away the ability for featured streamers to play games while in queue for 20 minutes, which I'm sure will make their streams more boring for them and their viewers. What if they want to read a news article pertaining to another game, or the SC2 Reddit, are they not allowed? Seems kinda bogus.