It damn-well is. There's good purpose for it though. It's cheap as **** (and particularly boring), but M2K is ledge camping 'cause Falcon has garbage anti-ledge camp options. And if Falcon tries to answer with camping back, Sheik's sex kicks and needles snuff Falcon off the ledge anyways for an easy gimp. M2K is known for pullin' bullshit defensive tactics like this, and truth be told, it's part of why he wins so many tourneys. It's such a great strategy. Ledge camping is a mind**** in that it's straining for the opponent to deal with that monotonous idiocy. In this particular match-up, again, Falcon has a noticeable issue with a ledge camping Sheik. Lastly, it's an easier way to play defense than it is on stage. There's less risk for Sheik and more for Falcon.
It's essentially godlike spacing, 'cept it's a dick move. But that's how tourneyplay is; everythin' goes if it ain't against the rules.