I’m a little disappointed that I’m not surprised: it’s the Publish America stunt on a different scale (“Your (creative work) is wonderful! However, we can make money out of it but you can’t! No need to thank us!”).
The one thing you need more than anything else when looking to get stuff, be it a publishing contract or a freeware stop motion animation program, from Teh Intarwebs is some sort of trustworthy guidance. These “awards” muddy the waters horribly.
You wouldn’t trust a car salesman who put a “Best Buy Bargain!” on every single car, why trust a download site that does the same thing?