Scam. Illegal, no, not even close. Just crummy and to be avoided.
All UHF antennas receive digital channels (when ran into a digital tuner, of course). Some do a better job than others, and most cheap rabbit ears, unless you're very close to the towers, are fail. But a UHF antenna from 1980 is just as good as any.
All of those channels appear to be over-the-air, so any antenna meeting the criteria above would be good for them. Given that buying it outright is $299.99, for that cost you can get a roofmount that would kick the ass of this piddly thing that probably beats most internal antennas but is overpriced in comparison to competing models.
http://www.aintitcoolnews.com/display.cgi?id=14738 I saw it last Tuesday at the South By Southwest Film Festival in Austin, Texas which I did volunteer work for. In short, the movie's pretty good save a couple of things.