Sorry to throw a spanner in here, but: I think if you're going to have two categories, e.g. 1000 words and 250 words, it would need to be two separate competitions, which is fine if that's what's wanted, but writing 1000 words or 250 words are different skills, and to mix them up would not be comparing like with like. I also think; stick with one subject and make the word - count exact, that's also part of the skill of it, otherwise it all gets a bit floppy.
End of the day I don't really mind, and if people don't like the rules they don't have to enter, but here's an opinion.
Edit: Last year was the first year I'd entered, but I quite liked the second round voting thing, it made the competition more substantial, and more exciting.