I might get some negative response to this post but...
Okay, there is no reason why this isn't hypothetically doable and I think it should be executable in practice. My real objection is that this represents an abandonment of deep space flight. It's a tacit admission that it is too difficult and costly to build DSH and fly it to any target, so they've got to fly the target to the Earth/Moon system.
I disagree. Is a test flight "an abandonment" of the goal of flying a paying payload? Was Gemini an abandonment of the goal of landing people on the moon? No. They are steps in that direction.
I think this mission could be seen in the same way. All of the existing constituencies (moon, L2, asteroid-out-there, Mars) are howling because they want NASA to drop everything else it is doing and focus on their desired plan of action NOW. They all have schemes where something half-assed but practically meaningless can be done, along with other plans requiring massive expenditure and large infrastructure and accomplishing lots of things we hypothetically might be able to do, held together in a big mudball by wishful thinking. In reality, there's a lot of engineering and TRL development needed, and this little baby project is a useful step for some pieces of that development.
If you don't have the budget to work on all that development and drive those risks down AND complete SLS, this allows you to work on pieces of the puzzle first, at lower cost, while also developing out the capabilities of your launch platform.
Of course, if you wanted SLS to be cancelled in favor of lots of EELV launches, this is further movement in support of SLS. Tough. Feel free to go out and earn/raise billions and do things your way. Or you can organize politically to kill it, but you have to understand that killing the PoR inevitably weakens NASA and support for NASA as well, as it has so many times in the past. (It's the French Revolution syndrome: once you've marshaled the opposition to send projects to the guillotine, YOUR project is likely to meet the same fate when it gets its chance. At this point, it is far too much easier to kill NASA's big HSF projects than to finish them.)
Rather than an abandonment of Flexible Path, I think this is a further investment in that approach. Rather than developing lunar landing hardware, this allows exploration to be done while in cislunar space without dropping into the gravity well. If you are a fan of ISRU, this is a way of testing/developing ISRU hardware without having to build a lot of infrastructure deep in a gravity well. If you are a fan of manipulating asteroids and averting planetary calamity, this is a way of testing working hardware on a smaller scale. If you want asteroid mining to take off, this is a way to explore that machinery, while still in the presence of humans to troubleshoot, observe, and innovate.
Meanwhile, you are testing your BEO launch/reentry hardware, radiation mitigation schemes, ECLSS, and so on.
I think the proper perspective is not that this replaces Flexible Path or moon or Mars, but represents a reasonable small-sized mission for early SLS flights. I don't think it's a
justification of near-term SLS, so much as giving near-term SLS a nice side benefit beyond proving out upper stages, BEO operations, etc. It's the same sense that including a small scientific/commercial payload on the first flight of a new launch system doesn't justify an already necessary flight, but serves as icing on the cake. The actual justification of SLS rests in its capability to accomplish bigger things down the road. And, as icing on the cake, the confidence in achieving those greater things can be increased by upping the development level of hardware used to dig/drill/scrape/cut/extract/refine within the constraints of space operation.