Out of a primarily web design and coding base of how many users, thousands? I find it hard to believe that there aren't appropriately qualified people who can judge from within the community itself. Hell, I'd put my hand up and offer my time and expertise for this contest -- but you have seen
nothing of my ability to code a template so who knows if I'd be allowed.
I'm really against the whole timed thing -- it's really an irrelevant factor (so long as the finished piece is in before the deadline) in my eyes. If anyone wants to draft up a set of guidelines for the judging, let me know and I'll give my own thoughts.
Design-off? Well, go set one up if it's such a good idea.