Yes, of course it is the purpose to get the people work on the new stuff and get awarded for it. However, it is a new app or game, regardless how much time it takes to build it. You can't just finish something in 3-4 weeks, especially having a family, job, life out there that you have to commit to.
Having two, three, hell, fifteen people doesn't grant that you will finish it in a few weeks as everyone has something going on other than making games. Time of developing should not be a factor here as Neo has stated that 'original enter (entry)' is the one that hasn't appeared on compo before thus will get +5 original score thing.
A few compos ago there was the winner in nds game, WolfSlayer that took about a year to be made. After you see the game, you understand why..How long it took for, let's say Ninja Gaiden to be made, noone is gonna say 'Oh, that game is old' once it comes out.
That is all I'm saying, time really, really should not have anything to do with this, people with good concepts might actually make something in a few days and win over those who have worked for months and months. No problem.
It would be unfair to say that they suck only because the game was made in a few days and not in several months.