It would increase the amount of work application developers (assuming you mean package maintainers) would have to do. More work for no pay has never been welcomed by anybody in the history of the world.
Well, they only good reason to start such a project would be monetary benefits. Besides the simplification of having a (stable) cygwin snapshot release from time to time, where all packages play well together.
And I don't see any problems to charge money for such distributions, as long as the GPL and sourceware's additional restrictions (?) are honored.
Like every linux distributor makes money from selling CD's and charging for support. As long as on a server (publicly) the snapshot ("release") is also provided.
--
Reini
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