It's silly to say that scouts shouldn't be allowed to build canoes/kayaks and take them on the river.
It is equally silly what this group did - building their canoes/kayaks and then not really testing them to know they would work, and expecting them to make a nearly 70 mile trip.
The trip you describe sounds awesome. I did a week long canoe trip as an adult with my brother and some other guys, and it was awesome. I also did a Shoshone Lake canoeing trip in Yellowstone that was very cool. I'm not sure either of the trips I've been on are ideal for a home made canoe. But I could see situations where making your own could be fun. And if done right, could be successful as well.
Too bad this group made some mistakes that is giving scouts and leaders a bad name.