I'm a bit surprised that Schneier is advocating for "no award". Even if the SHA-3 candidates are not fundamentally better than SHA-512, we really do need a standardized algorithm that has built in protection from length extension attacks.
While I agree with you that this is an immediately important feature, I don't think Bruce's premise (that SHA-2 is still pretty good) is invalid.
Perhaps like you though, I don't understand why a new standard can't be incremental. I think it's silly to wait until something major happens to change.
Interesting, is that because they only return part of the final state (by slicing sha-256 and sha-512) where unsliced 256 and 512 return all of the algorithm's running state as its result?
NIST has also specified several other truncated hash functions such as SHA-2-512/256.