I thought that comment 116 from rubbertoe_mankini said it best:
As a regular Fringe attendee, I can't see the point in these awards. Have the judges heard every joke there? And it's a one-liner rather than joke,no? Also you never get entries from the comedians who are lesser known, it's those who appear on Dave regularly. Plus they steer clear of anything edgy.
So it's really the best non-edgy, Dave friendly, one-liner that the judges bothered to go and see.