I may not be the target market, but downloading a crappy mobile application, finding out it doesn't do what I want or I don't like it, and deleting it (or not) is not a big enough pain to download a mobile application to solve this problem, find out it doesn't do what I want or I don't like it, and then ultimately delete it.
Downloading an app that tells you to download apps is not a business model - regardless of what kind of social connectivity graph search you have going on in the background.
"Discover good software" is harder than "making good software". Lets all start on that problem first.
I don't think you can say this isn't a business model without some data to back that up. Just because you are not the target market does not mean that there isn't a target market willing to pay (though I'd like to see updates from them to hear if this works).
This is great, but of course they can only do it on Android, because they have to be able to troll through your list of installed apps to generate recommendations.
I did some contract work for another company that did something similar for iOS. We ended up building a Java applet that would scan your iTunes folder for apps.
The applet is integrated into the client's site (appolicious.com). That was a couple of years back, so I don't know what the current status of everything is.