I think it's a good idea - you need SOME way to get rid of them, so why not something like this? given that you can't drop/transfer them.. rather than going in a cave and dying a bunch of times to break something you no longer want..
at least, for me, it's a good idea - I have a near full bank, and inventory almost full - on all my characters (and I have 8!)
I don't care about the lack of a refund either.