Frankly, I think including closed-source (binary even) apps would be
better PR. You CAN use web2py to build them, so why not show them off?

Can't closed-source applications already be shown off?
I'm thinking about http://www.appliedstacks.com/PoweredBy/web2py

I don't think it is our job to determine the contest's rules.

I for one quite like the idea of an open source contest because it results in (hopefully!) many reusable starting points for people to build upon, as opposed to pretty screenshots for people to feel jealous about :-)

Best regards,
Stefaan.

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