I think part of it is called the Despair Arc refers to how this is so bad that it'd put the watcher in despair. Unlike the case of DR1, I can legitimately believe that if people in the world of DR is forced to watch this stuff they might be compelled to commit suicide. The premise is that basically at set intervals Junko-tech incapacitates everyone besides the bad guy, who then murders someone while everyone else is incapacitated and then people can totally talk about who did it and try to catch the bad guy before he tries it again. I know the people who attempts murder in DR are generally morons but it'd be pretty hard to screw this up even if you're a moron. Originally I was hoping it turns into a battle royale since it's revealed several guys in the Future Foundation apparently could've fought Mukuro Ikusaba 1on1, and heck you might as well bring back deceased with Junko-tech and have a dream team match. I always thought the whole random high school kids dragon punching Monokuma mechs in Danganronpa IF is the only thing that actually made sense, as in if random high school kids can't dragon punch mechs and stuff then why would the world even depend on those guys to salvage the world from an apocalypse?
I like both the Future and Despair Arcs. If you didn't play Danganronpa 2 then yeah the Despair Arc is going to be total trash. Episode one was basically all inside jokes and things that you would only care about if you had already spent time with the characters in the game. The style is also much different then Danganronpa 1 (and the Future Arc). While it remains to be seen if it will be able to stand on its own, there's really no mercy in episode one if you haven't played Danganronpa 2 and don't already know character relationships and in-jokes. Everything in it was there to appeal to the game player.
I imagine the Future Arc's first episode was similarly trashy if someone hadn't seen the Danganronpa anime or played the first game. The second episode revealed what's going to make the series interesting. Maybe the Despair Arc will do the same thing with episode two, but considering the subject matter being dealt with... I doubt it. So far the Despair Arc in particular is for fans of D2.