Yeah, it's completely bonkers.
I can't really fathom "green" new-age types who somehow can't see that pumping electricity directly into the earth or air wouldn't be absolutely awful. I've actually met someone who I had this argument with, once: e.g. the electricity would be "free" because it's not metered. I tried to point out the obvious flaws, e.g. pumping electricity through the ground would be wasteful (electrical resistance => heat, loss as electromagnetic waves), that someone would need to pay to run the generators (e.g. massive tax bills), and that it would have devastating effects on the natural environment, but she wasn't having any of that.
So, the needed amount of generation would be much greater with the Tesla "free" electricity, meaning more coal needs to be burned, while the effects of pumping AC power through the ground would be an environmental catastrophe. Also, people like bitcoin miners and other electricity-wasters would be rewarded, while people who care about conservation would be penalized (since the electricity taxes won't discriminate). Additionally, if there's a finite amount of electricty generated, then some people would inevitably come up with ways to maximize their share of the electricity that's been gobbled up - e.g. you'd have a "tragedy of the commons" situation.
Imperviousness to the obvious flaws with a centralized plan to electrify the very Earth should be a clear warning sign that you're dealing with an insane person whom you should disengage from conversation at the first opportunity.