That would not be the reason for the dilution. Mark dilutes to put money in his hand. Simple as that. He hasn't proven adept enough at the business side of "pinks" to mastermind anything that ambitious.
He dilutes to pay for whatever needs paying for. No way to know if it is Mark doing that, but most regulars here know who/what we are dealing with, and their track record.
Aside from that, I wouldn't think this would be that great of a funding mechanism for film makers. It takes a ton of time and effort and dealing with some SERIOUSLY shady people to put yourself in the position to be able to dilute anything in the first place.
It doesn't mean Mark can't get a film funded this way, it just means that it isn't a simple or "quick" way.
Kickstart is so much more legit than using stock dilution/promotion to fund... You know exactly what you get with Kickstart, and they aren't lying/faking/bullshitting/scamming the world from the get go.