I kind of get your concern. I share the hope that blockchain tech will empower artists by providing a secure, free market for their work and services. It's something I have mentioned several times. In this case, I don't really know what I'll do with the images.....what motivated me to make the disclaimer was the fact that after previous art competitions i've run, occasionally I found the artwork being used by others for different purposes and that can lead to confusion. Creativity is potentially limitless for a talented artist, what they really need is community awareness. I try to make the prizes substantial enough that an artist is well compensated for their time, it is difficult to predict the future value of an image that does not yet exist and there are many reasons why an artist may choose to participate in an art competition besides the possibility of winning the prizes. Either way, artists are free to enter or not :) I like to think I've always done my best to support the artistic talent on Steemit and be very fair.
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I completely agree on this point with you and as said before I encourage and appreciate initiatives like this.
I just wanted to explain my feelings about copyrights, it is something I am sensitive to because it has been recently more and more difficult for photographers (but I would say visual artists in general) to survive, because the copyrights are less and less considered. When clients are hiring me, they have the sensation that they have any rights on the images I produce during the shooting. Many clients forgot the fact that there is a major difference between the prestation (the actual shooting session), and the rights to use. It is obvious that the price of an image won't be the same if the client is using it in front of his store to promote his business, than if he plan a worldwide ad campaign with giant billboards in different major countries. That is very interesting subject to discuss though. Thanks to have shared your vision.