If, in an ideal world, the government said, 'Ok, you're unemployed, so come and work for us, we'll pay you minimum wage and give you full employment rights and pay your NI'...I would say fair enough.
However...Unlike with employers, there's an uneasy feeling of being 'owned' by the government when you claim benefits.
Sure, when you are employed, your employers have control too - they can reallocate your department or even send you on a business trip, but...there is a certain dignity and respect - an acknowledgement of your choice to be there (even if you'd rather not be) in the form of contracts, holiday entitlement, minimum wage etc.
Although MWA seems reasonable in terms of 'we all work for our money', it lacks the dignity and basic (even primal?) satisfaction of having earned an income and provided for yourself. It's more of a disempowered sense of merely avoiding the loss of a life-line.
It's not actually employment and it's not empowering people to find employment. It's not the workhouse, but it's a slight slip down the spectrum, taking some dignity away from the job seekers. It seems to generate a, 'And so you should!' attitude from people who have never been there and creates (or widens) the 'them and us' gap. When in reality, the only difference is losing a job or not. It's not a different breed.