I reached out to them early to offer help since their organizer wasn't plugged in to the local dev or startup scenes. There was no follow up. Then when that nasty legal note was discovered, I reached out again and found out that their intent was to make it an offer to join Teralogix and be funded by them, not a requirement. Alas, they fumbled both and I'm disappointed we won't get to see some new ideas from this event.
The value of the hackathon is rapidly diminishing. In fact I'd venture to say once they started to be formally organized they started to devalue.