I think giving the loser a pokemon would be a nice gesture, but in the end, to much controversy would arise out of it. I personally would see it as a "well you sucked, have this to make you feel better" kind of award. Like "Tuskate, you were the shittiest kid on the little league team, but you get a trophy too". That shit pissed me off when I was a little kid. I say frak it.
I really wanted in on the first one and now I can't wait to get going on this one. I think I'd also volunteer a prize to the top two finishers. They'd be probably get the first and second best pokes in my thread as determined by me.