Of course. No problem and anyone who applies for citizenship this way still has to pass the usual background checks, health checks and so on.
The only difference is that they do not need to prove that they have a job or useful skills - which, given that they already have a heap of money is hardly necessary.
Why would you not want to bring entrepreneurial people and wealthy people to NZ? We have to get the income of the nation up somehow and whatever we've been doing for the last 150 years has hardly achieved a lot in that respect. We still have far too much of the tax burden falling on too few people.
The question for me, is WILL he provide any value. Time will tell, but I'll be pretty surprised if he spends significant funds here other than buying land, so I expect his tax contribution to be minimal.
pretty sure he wont be a drain on it either.