In my opinion its a good way for groups now. The system which was implemented is a good way even for groups as for the GMs too.
On the one side you have the groups which can now show monthly that they are worth an offical group with activities and all what the group is bringing up. Also if there are New groups with this system they can bring themselves to the GMs and show hey we are working hard for our group and we really want this group be alive. So its a good system and even if some offical groups need to do some changes it shouldn't be a problem for them as if if you really want to see the group succeed you need to get to work and do so this should be worth a group.
And for the GMs they have a lot work to do and if we can make this work a bit more simple for them this shouldn't be a problem and with this system we can help them alot if its done good as they only need to review the list the group leaders are creating.
Its my opinion so far may not everybody is with me but i think its a good way to handle the groups.