Funny that you would mention this right as I'm learning my way around S2. I'm usually all for these sorts of contests, but they really seem to be excluding LJ users. At first, the templates they provided used MT- and TypePad-specific tags, so LJ users couldn't use them at all. (Which is pretty rich, coming from people who claim to advocate open standards.) Then they apologized for that and published example output pages for each of the templates such that a sufficiently savvy LiveJournal user would be able to create an S2 layout or style from them -- but as I write this, the link to the new example output pages is broken! Oops.
They seem to be saying that neither users nor contest entrants will have to do the work of creating the S2 layouts for the new styles. This sucks because there are users out there perfectly capable of and interested in doing this stuff. Some obviously underappreciated LiveJournal grunt at Six Apart shouldn't have to do it.
I might be misunderstanding how all this works, but man, they couldn't have gotten one LiveJournal person over at Six Apart to look at their stuff before they launched it and say, "Hey, we're doing it wrong"? It wouldn't bother me if they ran a style contest for MT and TypePad only, but if you're going to put "LiveJournal" up at the top, then know what you're getting into, okay?