McDojangsim/McDojoism is neither a totally terrible thing for a school to be, nor is it a totally good thing for a school to be. It is a certain set of practices that resemble the sort of business model McDonald's uses.
Generally you are going to get schools with higher quality referring to schools of lesser quality as McDojangs, even if it is for the wrong reason. So the opposite of what you've said.
The lack of standards is something that a number of McDojangs take advantage of due to the lessened effort of not providing quality training, and they can still hand out black belts. So reduce cost = increased profit. Which is what McDojangs are all about, not all do it but it is a practice common to them.
It is true that some schools that would call others McDojangs because of jealousy of their ability to gain students, but a lot of the time they are in fact losing out to kickboxersise renamed taekwondo, and they do not want to go down that path. But then again you get teachers who teach for the love of teaching, and they will refer to some schools as McDojangs, so they're not even jealous.
Purple belt is hardly a sign by itself of McDojangism, just because you can't deal with purple is a reason to go nuts.