You make it sound sordid, Mike. Don't most competitions have entry fees? I've entered local art competitions that have charged the same to enter. Admittedly the word 'nominee' is a bit over the top, but I don't feel that I've done anything wrong.
Sorry I didn't mean to imply you had done anything wrong. I personally would not enter any award that required me to pay to be nominated. I think that a writing contest is perhaps different, such as a short story contest, Writers of the Future, etc that has some value and some prestige.
I looked at the award details and thought it just looked like a way of making money...