It looks quite "home-brew", but I don't think there's anything inherently wrong in rigging up a power supply like this, is there? One power supply provides 5V for 5V pins, while the other supplies 9 or 12V for those pins.
Sure it may be a little jury rigged, but it should work just as well as something more "factory made".
Of course, if poor quality parts are used, one of the power supplies might fail, as in this case. But that's not a design problem.
Well....actually, there could have been a little more ventilation added. Actually, if I had made this, I probably wouldn't have put it in that beige case at all, it may give it a neater appearance, but it restricts airflow around the black wall-wart adapters. Perhaps that's the cause of the premature failure.