I am not ready to give in to the "free photos for the world" trend yet - and I do not think that it is in the best interests of photographers or photography to go gently into that good night.
Two things we all need to do, I think:
1. EVERY time we see contests with such terms we must speak about it everywhere we can. Photography instructors should discuss this with their classes. Photo bloggers should call the contest sponsors on this. Post it on your facebook and twitter accounts. We need to shine the light into these dark shadows.
2. Explain to people why these contest terms and conditions are so grossly bad. In just about all of the contests - even those sponsored by groups I otherwise support - the onerous terms apply to ALL ENTRANTS, not just the winners. And the terms virtually always assign an unlimited and free license to the sponsors and often to their affiliates.
3. In addition, if you read the liability terms you'll probably be horrified to know that if the sponsors/affiliates use your photo in ways you did not anticipate (and can no longer control) and this upsets someone... YOU will have accepted full legal and financial liability for the misuse and will have agreed to hold the sponsor/affiliate harmless. This is serious business.
Let's all get loud about this issue!
Dan
Here are a couple links to posts on this subject at my blog:
http://www.gdanmitchell.com/2009/07/15/tho...oment#more-4542http://www.gdanmitchell.com/2009/07/07/pho...tests#more-4440QUOTE (bopbop @ Jul 31 2009, 11:52 AM)

I submitted to the inaugural contest and was an honorable mention for 3 photos (one of which was a peoples choice top ten) and a
finalist in the Best Nature photo for a simple portrait of an immature Tricolor Heron. Incidentally I preferred the altered photo with the top two leaves removed but submitted the unaltered one per the rules. I also submitted the second year but the process had become more onerous to me since they now required the larger size submissions and I was not willing to upload 6mb photos to Flickr for all to use indiscriminately-despite the low likelihood of me ever earning real money for them. You can 'block downloads' on Flickr but we all know how useful that is. I emailed the photos the second year, an option then, and as I recall I was not convinced the process worked correctly. Could you plaster a copyright notice on them? That may very well be a kiss of death to their chances.
For even more onerous see
this for Nat Geo's rules. In particular Section II paragraph 5. irrevocable permanent global rights . I guess a small version might be enough...
George