1) New designers would get feedback on their strengths and weaknesses
2) We would be developing a community portfolio of designers entering the same contest without having to worry about copyrighted works...the way I see this going is that we could also do some kind of "find a designer that suits you" where it shows random anonymous entries from each of the designers grouped by these informal contests and they click through several and then the system tells them which designer they best matched with, at which point they could contact the designer to hire them or contact them to ask them to enter the competition
3) It would be fun

4) It would generate many more examples of what the members of this site are capable of.
I think it would be great, but what do you all think?