I can see where Chia is coming from on this. Getting a distributor/label could get your music out there more.
This is still a good idea for smaller producers though. Those that either just want one other platform, prefer to do things on their own than go through others, want any/all royalties and copyright, etc. gives the people that want full control and ownership of everything a good place they can put music onto and manage, just like they would on say, YouTube, SoundCloud, or BandCamp.
I suppose it depends on the individual, their goals, and how much knoqledge they have on all this.