Yeah I had actually read a similar post like this about a week ago on gamespot.com Vita forum, too. Somebody else posted a different video w/ another dude posting a pretty PO'ed YouTube video blowing the kid off of taco bell screwing him over w/ that same email bs. That's definitely some dirty sh** they pulled. Even worse is that they probably knew this exact thing would happen, hence that bs "fine print" clause.
Yeah the contest as a whole has been handled really crappy. I Had been submitting entries to the Boast Contest and getting no reply from them nor any of my entries. Couple days ago i get rejection emails for entries i submitted the first week of the contest.
One entry is currently on their youtube channel but not on the contest site. and they finally accepted one of my entries but it happens to be one of my less well made ones.
Check my Forums Sig for a link to the entry they accepted and a link to a forums topic where i posted SOME of the rejected ones.