Y'know, I really think this has potential.
Everytime something new has been implemented on Newgrounds, it's been postive to the utmost extent, for both users and producers. I have utter faith in the Wade brothers and their affiliated friends and employees, and the fact that Tom Fulp (and whomever else may be affected) is willing to donate $1250 to good contributors, it really makes me tingle.
People are bringing up a lot of good points and issues, all of which I have faith in being put to both rest and to the test. Some good solutions have come up already too (Namely by Mattsuicide - Great voting system idea ^_^) I think that if users are willing to help in such a way, then there's people who will make sure the system works too. Sure, having your work seen by a huge public is great, and I'm sure being the level of internet celebrity is just groovy, but don't you think people who put all this time into things we find so entertaining should have some sort of monetary reward? I mean, I don't think it'll change them, or hurt the community really. Maybe it'll encourage more content from out favorites, and content from soon to be internet gods.
Of course, there will be those who hate it to its core, blaming the reward for various faullts that will undoubtedly arise, but these are the kind of things I know the NG staff will do its best to try and work on. There may be those who submit flashes purely in hopes of making money, and there will be those who unselfishly pray the community finds it to their liking, but either way, the users are reaping the rewards.
And under MattSuicides system (Once again, genius) people who work on flash movies, know the effort that goes into scripts, storyboards, and ultimately animation, these are the people who would know best of who deserves it.
Of course, this is only one man's opinion, and I'm subject to fault, but I really believe this system will work out for the best. If it doesn't, well, that sucks. But hey, it'll just be removed then, and it will simply become a paragraph in NG history.