Well, i totally understand you... But I don't need a 1000$ logo, i just need a simple logo. This is not a company meant to grow, I just want to create a portfolio to get a few clients as a side job... So I don't see why I would need to pay a lot for that!
Even if you're just paying 10$, you're asking artists to work for free at your leisure, who will receive payment only if you like the work they produce, not for the fact that they actually worked. This doesn't make sense; people need to be paid for the time they put down, not for your personal opinion. It would be better to find an artist you like, ask them if they'll work for you, pay them for their time, and be done with it. This isn't a 'contest', as much as a way to employ several artists for the cost of one.
I understand your point of view... And in some way it is not fair. However, the company I am working in is regularly using "contests" for new designs. It's an approach that can be interesting I think, but that is my point of view!
However, if any artist doesn't feel like working for nothing, he can also show me his portfolio and if I like it I will be happy to choose him!