Yeah, its based on the same concept as the creepy QALY's (qualtity of life year). There is considerable literature on this in the health evaluation field (a mainstream critique of their use as a way of discriminating against people with disabilities is D. C. Hadorn's article in JAMA back in 1992). I think the notion of trying to incorporate quality of life into health outcomes is good but no matter how sophisticated the attempt becomes mathemagically, there are inherent problems.
QALY's and DALE's attempt to do two unquantifiable things. Attempt to evaluate the subjective experience of quality in life and also view these numbers as a one-dimensional index of societal values for treating people. Generally, people in the health evaluation field are far too comfortable tossing these numbers around.
Note that this is not just a theoretical discussion. The original Oregon medicaid rationing plan explicitly discounted health improvements for people with disabilities. Not just creepy then, but criminal.
Peace,
Jim
"yes there comes a booming sound
used to come from the underground
now it emanates from a kinda welfare state
of the soul (yeah baby the soul)"
--Kurt Wagner (Lambchop), "Up with People"