I don't think MLB really thinks good prospects will play in this league. That's just marketing. If memory serves, one of the original ideas was to do it as a made-for-television reality show type thing in order to also boost interest in the draft as a TV product. They'll probably find a mix of guys looking to boost their stock, whether that's going a bit higher or just getting drafted at all (especially now that it's shortened). And they'll also make some of the coaches "characters." Maybe those guys will get some extra $ but it's also possible you consent to be featured as a condition of the player contract. Then they'll continue to follow the undrafted and unsigned players hoping they might still catch on somewhere for next year. It also wouldn't surprise me if, especially this year, teams don't officially sign all of their UDFAs right away and just leave them there.
I wouldn't think the quality of play will be much better than the existing wood bat leagues.
Also, what pitcher who has a chance of going even in the 20th round would want to add innings and injury risk in the meantime?