It would be nice if these sort of competitions could go to the genuine needy people...but good luck with that
For a start no needy people need 1200W PSU's so you should keep to the more sensible versions etc..
Also if the company sponsoring it does not want anything back (advertising line etc) just pull the winners from a hat !, You know with this sort of thing you will never please everyone regardless how you implement it anyway.
If you stipulate prizes are to help people and not to be sold, I personally think that would be sensible.
Finally what Shyper did was not wrong it was a competition and he won, the problem was for no fault of his there was no ground rules, sure most of us would not have, but that's just each to his own morals I suppose.
He lied in his reasons for needing the Power Supply, a few people actually did just put that they wanted to sell it on for profit. The idea of the competition was that the one with the best reason for needing it would win. He then just went and sold it.