I've been in a couple shows a long time ago, and even made the cut once in at the Colorado State Fair's show (yee-haw!) but I will admit that most of these shows' entrance rules left a bad taste in my mouth. I understand bills need to be paid and fees have been a part of the equation forever but, in this case, $200 is all they can come up with for the winner of this "a quite prestigious show"? One juror? You know how many $40 jpegs a person can bang through in a few days? It's no wonder eyebrows are raised at these things. Don't forget, the gallery will probably want 50% of sales in your exclusive exhibition as well.
This is what art co-ops and internet web galleries are for. Once you have sales/recognition/patrons you can go into negotiations with a gallery with some muscle. Without those you'll do as they say; that's the way it's always been.
This having been said, I do hope they have a good turn-out. Hope they look at the prize structure too. After all, who's doing the creating here?