Well, based on the last page (most recent) of the Logo Court section, the system seems to be working pretty well in weeding out the least worthy of us. (included myself even tho' I haven't had a LC in.. I don't know how long)
As far as the Top5 phase issue goes, well, that's bound to happen since we're on a CROWDsourcing site. Even the CHs pull their favorites in the same direction (layouts, colors, etc) through feedback. It's one thing to blatantly copy and follow the 1st ranked like a stalker and it's another to make minor tweaks that might appeal to the client.
Most of the times, a simple layout, a color scheme, a font WILL NOT be decisive towards winning a contest. For the times it really is, thank God we have the LogoCourt system, which I already said -I think- it's working.
On top of that, we, thank God again (hope He doesn't mark me as SPAM), have Ivan who can intervene in the cases that are on the edge.