It's a great TEMPLATE
It seems you haven't actually once commented on the actual peer review template itself. Your biggest issue is with the sample cover letter. The instructions even say you can have the employee do it or do it yourself and gather the information (which is exactly what I intend to do). I just saved myself the time of having to build a survey and I can write up a cover letter to send to people to do the review myself. It's called a template for a reason, you take it, use what you want, change what you don't like, etc. I think the survey itself is perfect and exactly what I was looking for. Our company is fairly small and less formal in our communications, so I don't even need a cover letter. I agree with you and would never make my employees ask for their own reviews, but that doesn't make this survey bad.
