Why did this happen? Because the artist, allegedly, picks the person who inducts them.
What's so bad about it? Pearl Jam really has nothing at all in common with R.E.M., other than both had great early records and then crappy ones later on. Also, if you watch Ed's speech, it sounds, I dunno, kind of not informed. He claims to have listened to "Murmur" 1,200 times in the summer of 1984, but he never says why or mentions a single song on there. He talks about him "mumbling." Yeah, we've heard about that before. He also excitedly notes that Buck and Stipe's first discussion was about Patti Smith. Erg...
Most telling moment: Vedder joins them to perform "Man On The Moon." Why was this song even chosen? And why did he choose to perform on it? And why is he so pumped up while doing it?
Most telling moment #2: The Rock Hall doesn't even list Vedder as the presenter for R.E.M. on their site. Then again, it is the Rock Hall, and they don't even list The Replacements as inductees on their site.