To me, this is a question in two parts: First off, having the querent physically draw the cards, rather than the reader, and having the reader then interpret them. In my opinion, this isn't all that different from a "normal" Tarot reading, because the reader is still the one who's interpreting everything.
Subsequently, we have a question about cold reading. I think it's actually useful to read the Wikipedia articles on
Cold Reading and
Hot Reading, just to provide some context.
Cold reading as a technique is, I think, perfectly valid--using general ideas and information that could apply to anyone to focus your readings. After all, in some sense, that's what Tarot is--a set of symbols that could apply to anyone.
I personally implement both cold reading and hot reading techniques in my Tarot readings, and I try to make it clear to my querents that I'm taking a more subjective, psychological approach, and that my readings are more accurate when they help me find the right track. I think that cold reading only becomes problematic or unethical when there's an element to dishonesty t it and the reader is claiming to have supernatural knowledge that they don't actually possess.
And finally, like Closrapexa said, at the end of the day we're reading fortunes on tiny pieces of cardboard. As long as you're open about what you're doing, I don't think it's easy to say that one technique is worse than another, because from an external standpoint, it all seems rather silly.