The teams who finish will probably have an mvp, maybe a pivot or two, hopefully some user traction. That might be enough to get to VC's in this climate. Or even just bootstrap and own the company 100%

It's also far more likely that the good teams will get sniffed out by angels at this early stage rather than giving pg a bite at the apple

Having said that you're right, I think pg will want to be close to these kind of things rather than futilely trying to kill them