Since you cannot be certain of the reason why a member is joining the contest, then i don't think it is a bad idea if the participants earn merits from their submissions. Take note they'll be putting in time, money and effort into it, and i am sure the bad entries would earn no merits or votes, so if the good entries earn merits, then it is great in my opinion and can qualify as a 'good or quality post'. You of all people shouldn't be complaining of this, you have so much smerits that you have been 'struggling' to send out, this could be a good opportunity, no?. 
You're right, it's not terrible to get Merit after working hard in the kitchen for hours. I Merited some of last year's contributions just 2 days ago.Updated mine as well. Tell me what you think.
My first thought: who's hand is that? 