Have either of you guys read RobbidaRobat's post on the BlueCat Feedback page?
I am familiar with that contest -- and reading through their feedback for her(?) entry -- it sounds like there is some wonky format going on that keeps their writing from getting very far, not the choice of "crazy" premise.
It sounds like the reader only skimmed the screenplay, and it sounds as if it were plaugued with typographical errors.
Without having read any of this author's work, it sounds like their "crazy premise" problem is actually taking a back seat to larger issues of presentation.
RobbidaRobat is encouraged to consider this possibility.
And -- in terms of the debate going on here -- unless you are writing a drama -- you absolutely should avoid contests like Nicholl and Bluecat. They will not select your horror or action script for the top prizes. They just won't.
Select a contest appropriate to your genre -- if you select a contest at all.