Actually most Link Exchange system works same way. So its a nessesary evil as every new member gets a chance to display his link on front page for his category.
There is a way to increase visibility of your site using this system. Submited link can be set to be premium listing for a fee. What it gives:
1. On front page of link exchange directory there is a box with randomly displayed Premium Listings.
2. Premium listing will ALWAYS be displayed on front page for the category.
3. Whenever search is performed in Link Exchange Directory – premuim listings get priority in results.
4. And each Premin listing gets a cool icon next to URL :p .
Since my site is only in process of been googled and cached by other search engines and traffic is low, I’m not attempting to promote the premium listing at this point, although each webmaster gets an autorespond e-mail with an offer upon acceptance of the link.
So its not quite as bad as you think! If you are willing to put a little money – power is in your hands.