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It's gone off topic now but wanted to get my 2 cents in...
The prize was specified for the contest and the entrants decided to enter knowing what they would get if they won. What is the problem? They do not have to enter. Designers are not losing out on anything as the people who post contests here (like myself) often cannot afford to pay any more than what they offer.
If people are willing to do work in their spare time for very little, then so what. It's their choice and you don't have to do it if you don't want. Besides its great for beginners to build their portfolio and to gain experience.
Simon
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