Everyone seems to assume donating the whole thing to the Foundation is a bad thing where everybody loses. Why is that?

Some of us mentioned earlier it might be a good idea to reboot the contest, donate the 120k quark to the Foundation and let the Foundation manage the contest in a FAIR way.
The 120k should be reserved exclusively for the logo/branding contest and the logo would be officially accepted by the Foundation.

The only thing that worries me is the fact that it is pretty difficult now to vote neutrally.