I think you're right. Perhaps its just because of my age, but this was a conversation I had with my advisor once I was accepted, before I decided to come to Columbia. I straight up asked the question because I had the concerns you articulated, and the concerns alluded to in the article (good one, BTW). I was told, and I believe, that the Post-Bac admissions committee sees the potential for success in each person they accept, otherwise they don't accept them. Of course Columbia is more liberal with admissions than Goucher or Bryn Mawr, but I think that is by philosophical design not from some sense of malice, money grabbing or misdirection. I'd also say that if someone comes to at top 5 university and thinks they are going to coast to straight A's, it's probably not the program's fault for their predicable underperformance. I'm sure that we both know folks that gave it 100% and still didn't make it. Those are the hard ones to evaluate for me anyway.
As far as your comment about the program being up front on chances, I feel that the program was definitely up front with me about it. Perhaps it's just because I asked, and I realize that this is n=1, but I don't feel like they were trying to lead me on to false hope in any way.
Admittedly, money wasn't a concern for me when considering Columbia Post-Bac, and I still agree with this. I gave this advice to a friend recently. I must admit that if I had to pay for it out of pocket, I would have opted to go to the cheapest 4-year school I could find. Everyone's situation is different though.