I can totally see the point of someone who wants to build their own version/copy/tribute/replica/pastiche of a car that they might not be able to afford, and kit cars provide a route to enable them to do this. There are actually very few people out there who could contemplate shelling out £40k+ on a toy.
The execution may not always be brilliant, but so long as they pass SVA they can be assumed to be safe and reasonable to drive, and in order to finish a project like this at all requires a great deal of skill and perseverance.
So all kudos to someone for doing this in my book, it's all very well to scoff that it's ugly and not a proper Morgan, but someone put a lot of effort into it. Is it worth £16k to a subsequent buyer though? almost certainly not - if it was, it would have sold by now.
I get your point Tim and I agree if it was up for £5K we would all be more generous to the vehicle