It should at the minimum strive to create a business that could potentially support the team working on it? $1000 profit from 8~ people working 2.5 days isn't scalable to even the size of their team, let alone anything bigger.
From (http://startupweekend.org/about/):
"Startup Weekends are weekend-long, hands-on experiences where entrepreneurs and aspiring entrepreneurs can find out if startup ideas are viable."
I'm not denying that it was a great exercise, but not a great exercise in building a business. It's not a hackathon, you're supposed to be learning how to build the framework for a sustainable business.