People who come to SW and look at is as a free way to get something built for their startup are not the target. It makes it a bit predatory and you get the reactions that you experienced. I try to warn people of this but some folks have their own ideas.
Coming with a team already formed also isn't ideal. The point of the weekend is not to start a company, its to work alongside other people and go through the exercise. With that mindset, you won't be disappointed when you "lose" but you'll gain some experience and grow your network. Thats the main point of going to the event.
If someone already is thinking about equity and contracts while doing a SW, run the other way. Its the wrong attitude for starting a company in general and in my experience generally ends up badly as they focus on the wrong things at the wrong times in other ways as well.