I guess I don't understand why penalize someone for entering lots of beers? If their beers suck, they won't win. If their beer is good, they will win. Granted there is a bit of the luck of the draw involved in placing in competitions, but you definitely stand no chance if your beer sucks. If someone has the dough for entry fees, more power to them. I don't have the resources to enter and ship that many entries to a wide number of contests. I would love to, but just can't do it.
If you are running a contest and can only handle a limited number of entries, which is understandable, then you may want to consider having a limited entry window or a cut-off of entries at a given number, no?
Again, I don't get how by entering tons of beers you stand a better chance of winning? Winning should depend on the quality of the entries, not quantity. Granted, if you are going for the Ninkasi at Nationals you need to have that combination of lots of entries and high quality ones at that. We don't bash those brewers who have won Ninkasi, right? Are they "shotgunning"? I think not.