Free game promotions are definitely good for GOG. Most PC gamers still have never even heard of GOG... I encounter this on a fairly regular basis (where I mention GOG to a PC gamer, and the person has never heard of it). Giving free games "that's yours to keep" helps to get the word out about GOG, including to people who know what GOG is but have their eyes focused only on the Steam front page... word about a free game reminds them to check out GOG again.
And most people don't care about time-limited crap, they're just demos, and won't make a lot of people check out GOG. People do value free games that normally aren't free.
Another thing is that it encourages people to create an account and start building up a library.
markrichardb: Hidden deep within the files of the original Mount & Blade is the activation code for an old Russian satellite that relies on collective computer processing power to disrupt the signal that shields the presence of our alien overlords. Up until now GoG and the Mount & Blade developers have formed the backbone of a resistance movement dedicated to human freedoms. Funded by an extraordinary adventure that ended with the discovery of the Templar’s treasure (it was a whole thing, I won’t go into it right now), they dubbed themselves the XCOM Initiative and recruited Rowdy Roddy Piper as their commander and chief.
That's very creative :)