I gotta say, this is one hell of a cool idea.
1) Keeps the community interested, so it doesn't die.
2) I don't claim to be an expert on coding, but I believe most of the coding problems involve finding and dealing with bugs. With a swarm of beta testers to help out, ESF 1.3 will probably be released a LOT sooner.
Honestly, bug exploitation does not bother me too much. The ESF team has stated that releases will be once every couple weeks...so by the time an OMGWTFGAMERUINING exploit is found and is spread around so that many people know about it, it will (hopefully) be fixed.