Answers
It sure is a chess variant, and now that you brought it up, it just became of the known kind. I take good note of it, even though I never heard of it before. It does sound illogical, as Daniel's comment highlight, so I don't think regular players would come up with it.
Tell them or not : does it really matter ? Don't be authoritative about the standard ruleset, that would be pointless. If you can see a way to lightly mention the official rules, do it, maybe they care, but if they don't, that's it.
These rules are illogical once one understands it's all about capturing the king, as Daniel very well points out. Yes, they are more complex to understand.
Strange things happening
Here's a position where I think this ruleset allows strange things to happen :
[FEN "8/8/2Rr1k2/4n3/3B4/3K4/8/8 b - - 0 0"]
1... Nxc6 {Is moving an actually pinned piece out of it's pinning direction legal ?}
Here, the white rook pins the black one, so the bishop is not pinned, but the knight is. Altogether, white pins black. Black to play, capturing the rook would lead to a legal position, because it indirectly pins the bishop, a posteriori freeing the knight, for there is no check from the just-pinned bishop. I argue this being a legal move is dubious, for the knight is pinned, for the time being.
It could be in this ruleset, but I found that to make these rules highly paradoxical. Somehow, you shouldn't be able to get a pinned piece out of its pinning direction — even if later on, it comes back on the board to legitimate it had the right to go away. I feel there's a “meantime” in which the position isn't legal, hence the move shouldn't be.
Let's develop on that “delay” thing :
[FEN "8/3rPK2/2k5/8/8/8/8/8 w - - 0 1"]
1. e8=P {what now ?} (1. e8=B {legal}) (1. e8=R {promoting to a non-bishop-behaving piece is illegal})
If the newborn consensus is right — a move ending up with a legal position is legal — then this promotion can only be made to a bishop-behaving piece. Again, I'm not liking the time during which the pawn lets the king vulnerable, but I'm more and more convincing myself that that's just my pinning intuition getting in the way.