I agree with your posts, spending thousands to save hundreds. But on the other hand, it is an incentive to do some things that need to be done at least by me. I have moderately poor windows, 45 years old, wood with aluminum tracks, they don't seal well. This may be the incentive I need to go out and replace them.
It needs to be done, it will cut my bills, it will make my home more attractive. Lots of pluses. Since I will be doing it myself, there are no labor costs and the rebate will cut the total bill substantially. I need about $3000 of windows, if the program cuts that in half, I'd be a fool not to do it. Upside, save energy, provide a boost to manufacturing jobs, and increase the value of my home. Downside, some people will needlessly trash good appliances, and some will spend for stuff they can't afford. You can't make everyone happy.