I'd be interested to hear more about the unethical nature of contests. To me it seems like if you don't want to work for free, you don't, and if you do, you do. Nobody's forcing you to do anything.
I work in more of the engineering side of the design world, and I can appreciate that I would not be interested in providing anything more than a conceptual design for free. But I wouldn't go so far as to say that such an arrangement would be unethical.
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