You're right - in many ways $1k is tiny, but I was hoping that there would be a bunch of annoying bugs / bugs in boring areas that cause people headaches that (other) people could fix in ~1 hour or so.
If others wanted to chip money into the pot, I'd happily give it a shot at administrating it for a bit and see if it gets traction. So far, we aren't seeing bugs submitted that would cost > $1k to fix either - if we do, perhaps we can persuade some people to chip in to help meet the cost...?
Could be enough to set up a website with accounts and a system that gives you "karma" for each bug you remove or a feature you add. Amount of karma depending on the bug/feature and maybe an additional voting system for users to push their favourite feature or most annoying bug.
Having a lot of karma on such a site may even be interesting for your resume when you apply for a job.