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The flavor profiles of cheap and expensive wines don't really correlate so this argument is flawed. 2 Buck Chuck and other cheap bottles have flavor profiles that tend to be sweeter and less acidic when compared to more expensive bottles of wine, especially from the old world.

I think the correct statement is that most people actually prefer cheap "industrial" wine as it's more approachable (sweet with low acid), especially in youth, than many expensive bottles.

Even that article you linked to stated "There are those who feel that the results should not be taken into account as the judges are not true, trained wine professionals. The California State Fair competition is dismissed by some critics as representing broad-based consumer tastes rather than the palates of true wine connoisseurs."

Blinding the average Joe with cheap vs expensive wine is not a good barometer for the quality of said wines from an well seasoned wine drinker's perspective.