Well, I've got to go with the majority, having contests to promote your site and attract business, and then REPEATEDLY having some "ooopsie" as an explanation to smooth things over is'nt ethical at all. No matter how its sliced, the whole thing smells of a corrupt and illegal way of doing business. Anyone who has a business has laws to abide by, which are to protect individuals and to prevent things like this happening. Now no one is going to be able to tell me that the PTB just walked out of a cave or were born yesterday and do not have a f***ing clue over how to run contests, or the difference between a survey and a contest. There are all sorts of reference materials out there for information. I am starting to berlieve that the reason it happened again with this "contest" and has gotten even bigger, is that nothing was done in the past and things were just swept under the rug. I've worked for places that have done things like here recently. All are afraid of the law.
BTW. BJ although i am sure everyone values your opinion, it would seem that you would be better spouting off in a field you know about.Graphic Artists are a unique and special kind of people. They are not hamburger flippers or apple polishers.
Cheers!