Click fraud is a big thing, with lots of counter measures, I don't see how they could go past them as they are saying themselves that they have a very naive approach.
To me it's useless at best, but more probably counterproductive.
I think you're right about click fraud. Actually, I use AdNauseam primarily to disrupt non-consensual targeted advertising. Even if the impact is small, I'm obfuscating my profile as a form of protest against tracking.
How is this better as a protection against tracking? You are still making requests to trackers, this is so easy to counter, make multiple tracking requests, filter out want changes, keep what's the same and you have some tracking data.