Not to pick on LogoSauce per se, and I did enjoy the competition, but there is a bigger issue here. Spec work and the ultimate devaluation of the profession. The fact that a large company can "hire" 50 or more designers for as little as $50 US and have them fine tune his/her cherry picks until they have their royalty free prize– a logo design that could potentially be a national brand. When this catches on and others launch similar sites where clients can realize an incredible resource network for such a little investment, it will ultimately hit you at home, in your city, in your pocket.
Maybe the answer is to raise the stakes. $500 us for a logo? There are obvously some talented professionals that dally in LogoSauce (who are also on
GDF) so lets hear what your take is on this.