Startup Chile is a great program, but Herval's post is completely accurate (I was in his cohort there building pingpigeon.com). Drawing down on the funds takes a lot of paperwork and time and negotiation, when the government bean counters inevitably find some random reason to disagree with you.
The money is there for you to get it; Startup Chile is not "Bullshit". But once a month, the time and emotional energy spent in getting the money takes away from your ability to focus on your startup. Raising vc/angel money is the same: your company gets put on hold while you raise the round. Think of Startup Chile reimbursements as the same but on a much, much smaller scale, six times over six months.
"Better options" is always relative. If you absolutely need cash-flow and freedom from administrative hassles, Startup Chile is not for you. But if you want some seed money to build on an idea without giving up any equity, and have ~8 weeks of working capital, this is a great deal. It all depends on the context of you and your company.