For those concerned about competing against DSLR owners with a P&S, I would suggest that's a non issue. All you have to do is spend about 15 min. wherever photos are posted and you'll see that most DSLR owners have no clue what to do with their cameras. You'll also often find P&S owners who produce gorgeous images simply because they've taken the time to learn the principles of photography and to learn how to use their cameras. 90% of a good image is determined by the person tripping the shutter, not the equipment.
The primary reason we are making the change this year is to recognize good photography. The emphasis will be on well-executed images, i.e, the subject must be in focus (Out of focus images will be ignored. Use a tripod or set your camera on a stool or stack of books. Use a remote release or the camera's timer to trip the shutter.); there must at least be some attempt at composition (start with the rule of thirds); the white balance must be corrected (unless you're intentionally presenting an actinic shot); and, in shots other than FTSs, there shouldn't be any equipment, mounting disks, or egg crate showing.
All of those parameters are easily met regardless of equipment. As Rev stated, you can produce quality coral and fish images with a P&S. He has. I have. I include two or three shots in my aquarium photography talks that were captured with a Canon SD1100. They show good detail and proper white balance. I didn't do anything special beyond learning how to use the camera and setting a custom white balance.
I encourage everyone to participate. If nothing else, you'll likely learn how to become a better photographer. We hope that the playing field will be level for everyone and effort and skill will be rewarded, not cash to buy expensive equipment and/or the ability to line up friends who will vote for your image.
Gary