I think it's a good idea, now the summer's here people have more time to skin etcetera, so a competition might encourage people (myself included) to start skinning more actively again.
Contests tend to encourage people more, although thinking of a prize would be hard - the one good think about the point system was that it was easy to reward people.
Well not for the skinning part atm but yes, the master contest 2. The other one was under the lords control but it was a complete failure on the skinning part. Something like 2 entries per season.