That is sad to hear... I think a handpicked design team, with amazing skills (handpicked by their peers for the work they are capable of) is a wonderful way to attract continuous business.
I will say that I DID go through the contest forum, and hope that my honesty will not anger, but there are many people sporting that badge that were not of a high enough caliber when using this method to boost client confidence in competent freelancers from this site.
Never an intention to cause ire... just honest opinions