I dunno. I think there's some validity to the idea I just think most sites don't do it right. Everyone taken above a certain round in the draft or who is ranked in the top portion of players at their position shouldn't be cut, so it shouldn't be a problem for them to be on a can't cut list.
I just don't get how a tenth round pick (Edge) who hasn't scored a TD despite playing Miami and San Francisco the first two weeks found his way on there.
Also, the sites tend to be slow to remove injured players from can't cut lists, which is equally inconvenient for people trying to replace them.
I'd agree with you if it weren't a public league. You ought to be able to trust friends/competitors to want a good league that isn't messed up by someone bailing.
But hey, how else can ya really protect a public league?