[jerf]

"Wouldn't it be better to run it as a competition or something in that case?"

Sounds like a worse idea to me. Lots of people do work and only a handful win. With their current offer, lots of people can do work and lots of people can win.

Also, the Switch is perfectly capable of using the internet, and has onboard storage. There is no technical barrier to them choosing 25 winners a month and offering them as download packs even after release.