I'm completely agree with you guys. Actually the thing is different. MeraWindows is not saying that they are going to make each and every member MVP. The fact is if one person deserves the award, he'll get the award.
For example, lets talk about Ramesh. He posted lots of nice tutorials and also helped members in their problems. IMO he deserves the award and thats why he got it recently.
There are a few other members too who also deserve the award and if I'm correct, all or a few of them will get it next time.
Actually there is a benefit in participating at MeraWindows forums. Since its supported by Microsoft directly, there are high chances that you can be nominated for the award since MS ppl keep their eyes here. So if you have good knowledge of MS products and heavily participate in discussion, post good and informative tutorials, then you can get the award and its not wrong at all.
And about competitions, they organize it regularly and there will be more competitions in future. 