If a person feels he can not compete or enter a challenge or contest because he has a 3mp camera, that's his own fault. It's not the amount of megapixels that make an image wonderful, it's the time and thought that the photographer took to get the image that makes the image great. Besides, once you've cropped, resized for web, and followed the rules for posting on this forum, your image is only going to be 800px wide at the most anyway. I've never felt intimidated by a contest, especially one on the web.
I don't think the Digital Dingus Forum members intimidate newcomers at all. If they did I never would've joined. Everyone here had DSLR's when I joined over two years ago with my lowly Coolpix 4300 and I felt welcomed, felt like my opinions were valued. My questions weren't looked at as silly and ignored. I got help, advice, and opinoins that helped me learn a new art. Maybe, if this were DPR, would a Contest and it's members intimidate newcomers, but not here at DD. A contest or a challenge could only benifit newcomers, especially those to DD.