Let me rephrase what you said in a better perspective. I don't think anybody would subject themselves to unnecessary testing, regardless of the profession or industry. If this becomes an industry norm, then tough cookie for us engineers.
Interviews are a necessary and evolutionary process of finding good employees, and we know that so that's why we subject ourselves to them. It's not a form of humiliation because it's the norm. How else would a manager figure out if you got the skills and character to do the job? It's not a perfect process by any means, but it definitely helps.
Here's where this startup tries to take things to a different level. I get the idea behind it, but I cannot fathom why anybody would want to subject themselves to unnecessary testing. What's the ROI? Why give out personal information and have it stored on some database for some undetermined, possibly indefinite amount of time (forever? 1 year? 5 years?)? Am I going to be paid to do this? Can I no longer get a job if I don't do this? If this is purely voluntary, I have absolutely no incentive of taking the test.
Perhaps these questions should be something the founders should consider.