Well, I can't see that there's anything specifically WRONG with the idea. It seems like a stretch for advertising, but it's not like they can give the team a signifigant advantage that would make the competition unfair. It certainly gives both Magic and Battlebots a slight push towards the mainstream, which is good.
Hmm... so maybe they DO plan to develop a multiplayer game online based on BattleBots... design your own 'Bot, upgrade it through duels, etc. Actually, that's a lot like Autoduel except you use 'Bots instead of cars.
Nothing wrong with sponsoring a 'Bot. Heck, it looked likely to grab the fancy of somebody at WOTC. And they're fighting Jay Leno's 'Bot?