I think it makes sense from their ethical viewpoint... even if it's technically meat it has no capacity for suffering. Not sure how economical it could get. And $1m doesn't actually seem like much incentive either, I'm sure the costs would outweigh it vastly.
And I'm sure they'll use some double talk to describe what it actually is. Look at how nicely they packaged and promoted pink slime as lean finely textured beef and people ate it for years.