This is probably the first time I've ever cares about "crowdsourcing" or his ugly brother-in-law, "cloudsourcing". However, I can't help but imagine why they want a solution for this. Seems like Cold Wat-era spook stuff.
It was a hiring contest/game to get people thinking about Instagram and find some talent, rather then a search for better system like Netflix's contest.
Probably not, as then you have to play around with blending two images and (un?)distorting them to match each other's shape. That's the hard part - people tend to take pictures in order rather than randomly.