This isn't exactly a new idea. It's called crowdsourcing, and more specifically, community-based design. Below is a diagram of the typical crowdsourcing process.
I think it's a great business model... outsourcing the work to a community of designers and paying them a minuscule amount compared to the conventional designer pay-scale, and receiving a similar (if not better) quality product.Top Coder is another website that uses community-based design for company logos and other design work. As an example, the designer of this logo got paid $300, and River Analytics Consulting saved thousands on a great, professional-looking logo!

It's a win-win situation: get money for fiddling around with Adobe design programs and add something valuable to your portfolio/resume.
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