Psydah, I understand why you feel that way, but if you read the contest rules for this sort of event you'll see that the sponsor chooses the challenge, not kongregate. At least to my understanding.
So from their point of view, you want the challenge to be within reach so more people will try. It's just advertising. This contest is costing the sponsor less that $1000 in prizes, where other means of advertising cost many times more than that.
So this challenge is just a cheap way to reach a few extra wallets.
Still, I hope I win.
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