NASA holds a contest for programmers who can improve access to its data archives
arstechnica.com
arstechnica.com
Other organizations might not be able to pull something like his off, but if NASA can, they aren't fleecing everybody, they're just taking advantage of their market position amongst computer enthusiasts as the recognized leader in space research.
For a second, just imagine the press you'd get if NASA chose you as a winner.
I'm not as knowledgable about the design community as I am about the tech community, but it seems to me that the design community rallies against these types of challenges a lot more strongly than the tech community does.
If some naive idiot wants to waste his time working on a contest, let him! there's still a surplus of well-paying work to go around.
NASA is part of the government, not a for-profit corporation.
Assuming NASA actually contributes something positive, when did it become wrong to actually volunteer your time to the pursuit of science or promotion of learning for the public good? I'm really surprised at what seems like a general eye-rolling response when most geeks recognize the value of NASA.
A great example of this kind of challenge working well is Boston's MBTA live tracking transit data and stop prediction data. They released an API and said "hey app devs, go make apps!" and now there are a variety of apps on several platforms. Some solve different problems than others and had they done one in-house app it is very unlikely it would have satisfied all the use cases that the available apps satisfy.
It's like the Netflix challenge (even the winners of the $1M prize were losers if your metric is $/hour) or the DARPA Grand Challenges (which have used a lot of unpaid undergrad and grad student labor).
NASA spends a lot of money developing data services for hard-core science users (e.g., for ocean data: http://podaac.jpl.nasa.gov/), so it's not like they're trying to get off scot-free. But it doesn't really spend on services for curious citizens.
The existing evaluation process for science data services is not well-suited for judging citizen-facing apps/services. There would be a bunch of science nerds wondering if it would be OK to release uncalibrated data, or if the map projection selected was OK, etc.
Earth science data gets in front of citizens more easily because of weather and climate, but planetary data has been under-exposed.
Topcoder (http://www.topcoder.com/)
Planetary Data Systems Challenge (http://community.topcoder.com/pds-challenge/)
Planetary Data System (http://pds.nasa.gov/)
And, ok, its probably quite fun -- but I was paid double this in 1991 (£10,000) for a week/10 days -- my first consultancy.
It wasn't even NASA or a mega-corp. It was documentation on the Victorian Architect, Waterfield, for a small museum.
The NASA prize is just a sweetener to make it at least worth some kids', undergrads' or unemployed coders' time to make an attempt. At least it'll look good on their CV, as you said, unlike with other silly competitions that give the winning team US$3K, and aren't even organised by entities as prestigious as NASA.