Like you I didn't care for the team concept at 1st either. It sounded kind of gimmicky and cheesey to me. It makes for pretty good TV though, especially if the score is tied and the last fight really matters.
I think the IFL can be successful if they stick with their current format and continue to sell cheap tickets. I don't think they will ever be a competitor to the UFC or PRIDE because it will be tough to pay top fighters the same as the bigger companies do. IFL is a great place for guys at the tail end of their career or guys just getting into the sport and trying to make a name for themselves.
The IFL just signed a new deal with Fox Sports and My Network TV to have more televised fights on national TV. This new TV deal and the additions of more teams in 2007 and 2008 bodes well for the company's future