I personally think this is a great idea. The block downtown where this has been put in is one of the hardest spots in Missoula to find a spot to chain up your bike (other than campus). The Break Espresso, Taco Del Sol, and Wordens are all within a block and are popular destinations for the kind of people that mostly bike.
This also solves the problem of riding on the sidewalk to get to the bike parking. With cars usually parked all along the street, I would usually ride up on to the sidewalk at intersections to find a spot. With the Corral, you can just hop off in the street.