i agree the picture should show it in a fence post or something but i also agree with knotty. if it's your tree in your backyard it's your decision. there are two trees in my yard perfect for hanging and the people who lived there before me did that very same thing. i hang there from my treehuggers just to use "real world conditions" but that tree is healthy as a horse. i know this is not good for the trees though.
i do feel Byer should state in the instructions that this method is recommended for home use only. maybe it does , did anyone check. don't get me wrong though, the general public is far too stupid to have that option available and not go screwing eyebolts in every freakin tree they hang from. BTW that dumb kit probably cost 3x the amount of the items from Home Depot.