The pajamas thing is weird and unnecessary, but cuddle parties seem fine to me otherwise.
I attended Reid's session at Loving More 2011 in Phila, and thought it was very good. That didn't include anything cuddle-related, but did include parts about consent and overcoming our own fears and shame about what we might want. I can see how some aspects of the cuddle-party concept are extensions of that.
It's possible I'm a bit of a Reid fanboy, and therefore, I don't see the uber-creepiness inherent in the system.
But, if there is something that you find creepy about the cuddle-party, why not suggest a way for it to be less creepy? What could be improved about them?