AFAIK, if you physically destroy the contents of a drive with a strong magnetic field, you also destroy the servo tracks, rendering the drive useless. Modern hard drives can't "low-level format" themselves; they're not mechanically precise enough.
I don't know how that would be more awesome, essentially spending effort towards the upper middle-class hobbyists. I would rather see them sell them directly to the highest bidder and focus the effort on improving their business, or give the drives to charity.
They were reusing their 1TB drives to test new pods with. But I think they would only need a hundred or so for that, unless they die faster in that workload.