I see no harm in it, if it is used just as a learning tool, much like a metronome. But if a student is down-graded because they do poorly with the machine, I agree, we are in trouble.
I also agree that a lot of classical recordings are over-recorded and over-produced. One of my favorite Mozart recording is the Piano Concertos numbers 20 and 27 with Clifford Curzon piano, conducted by Benjamin Britten. I was not surprised after I read in the liner notes that Curzon and Britten controlled the recording sessions, with musical considerations taking precedent over technical ones; and Mr. Curzon had the final say on the final product. We need more of this.
