[v21]

I can actually understand this. If you're running an awards ceremony, then the payback from the winner of the competition is relatively low - hopefully they go on to great things, and you helped them along, and establish your reputation that way. But the costs of having 10x as many entrants is pretty high - each of those entries has to be evaluated, hopefully by multiple people. Each entrant is another contact to be managed, another bit of IP to keep track of. The most important role of the fee is to reduce the number of entrants without reducing the number of genuinely awesome entrants. That's why Sundance's entry fee is so low - it makes it a reasonably expensive whim, but if you're honestly got a shot, it's obviously worth doing. It still sucks, but it's for sensible reasons, and not just for the actual revenue stream.

[Edited to add: But if anyone is charging more than a nominal fee, run away!]