I agree with the others who are stating it is about the benefits for your child. If it is positive, and fun and your child is growing from it then it sounds great! Kids have all kinds of things like space camp, scout school, etc. which may or may not be the "real deal" and are really just about new experiences and having fun in a safe and nuturing place.
McDojo was/is a term created by people who want to feel McTough about themselves. In reality most martial arts fail realty self defense scenarios in all areas except for giving self-confidence, toughness and a will to win. The moves, techniques, etc are mostly crap across the board outside of the martial arts class. I know I am going to catch flack for this - but it is the truth! If it were about taught techniques actually working in self defense scenarios that actually occur then all martial artists could conduct studies and gravitate to the few things that actually have shown to work in real life scenarios.
And anyone in business not trying to make a profit is an idiot. when you leave your garage, yard or free park you are starting a business and as such should treat it like one. This doesnt mean you can't offer quality instruction - you should - but dont kid yourself. Unless you are going to privatley fund your classes you are in a business and in business your goal is to increase revenue while decreasing expenses.
I would argue however that a business can be conducted in a garage, yard, or park. And I would also argue that even privately funded classes is still considered a 'business' as long as your trying to make a profit at it. I would disagree with your statement about "And anyone in business not trying to make a profit is an idiot." While that is true, it is also underlining!
I would also argue, but agree to disagre with your statement about reality based self defense and Martial Arts. While it is true that a majority of Martial Arts techniques 99% truly aren't street or combat effective, it is true that a few techniques and Martial Art based training does work and is effective (speaking from my own experiences!) Self Defense techniques and Defensive Tactics, Combatives, and all the other "Physical confrontation skills" are all apart of Martial Art techniques in general.
So I disagree with your analogy of Self Defense and Martial Arts in reality!!
Also, Mcdojos was a term coined in general for schools who only want to profit using Martial Art training, or like a factoroy 'prints' out black belts on a yearly basis by the dozens, it rarely has anything to do with 'toughness'.