I can't believe I'm not wholeheartedly agreeing with you, but I think it's extremely important to note that there is a broad spectrum of these types of businesses. Cutco, for instance, sells an excellent product that they really stand behind (lifetime shaprening/replacement guarantee). Yes, they're MLM, and yes, they rely on the casino effect to recruit salespeople, but I think it's a stretch to label them a scam.
Otherwise, yeah. I've seen a lot of people get roped into these sorts of schemes, and I'd love to see more awareness of their dangers.