This joke makes no sense at all.
First, why do they incinerate the Pokemon? Do they enjoy killing off Pokemon they could be using for other sources, like selling or trading?
Second, where do they get all these shelves of extra Pokemon that are in the exact same ball that the first one was caught in? They obviously aren't reusing other trainer's Poke Balls since they incinerate them.
Thridly, if we considered this to happen in-game, than how do our Pokemon retain their exact nature, moves, I.Vs, E.Vs collected thus far and most importantly happiness if it's a completely different Pokemon?
And finally, how are the "new Pokemon" given to trainers at full health and such since some of them, like Charizard and Gengar, can't be caught in the wild and they would have to of been dealt some damage, wheather from training or when they were being caught.
How in the world does this make any sense?