1) I am not a big fan of criticizing people who are at the gym. Lots of folks get anxiety about going to the gym because they worry that they aren't doing things right or that people will judge them. Props to anyone who takes time out of their schedule to hit the gym.
2) Lots of people have bad knees or pain in their knees with full squats. It's incredibly common and it can be relieved by only performing a half or partial squat. In fact, I recommend this to tons of my patients who are having these issues.
3) If they maintain "proper form" through their half squat, it's still an excellent exercise.