I updated the OP, and I am going to bed.
@darkswordsman17 - I guess you missed the part where judges are directly financially invested in the outcome of the awards. I also don't get the whole comparison with PA promoting one of their own creations on their own site. These award shows are not ran by a game development company.
You can be right, and there is nothing illegal going on, I simply thought this whole thing might be interesting to some.
This is not uncommon at all and a lot of awards are that way (they're put on by the industry, or media of the industry which is generally supported by the industry, they're awarding, and many times the judges are members of said industry who get direct financial incentive, as well as being members of companies that would get direct financial incentive by their products being considered favorably). Is it $#!^^$? Yeah, but instead of this being evidence of the "grand conspiracy of gaming integrity" it's more making those people look naive to how the world works.
A lot of the indie gatherings are/were setup and run by indie developers. As they grew they've gotten others involved, but I can't believe you seriously don't see how blatantly obvious it is that it's been a game to promote indie games, and largely by specific ones, for a long time. I don't think it was even really that nefarious, just that indie developers realized they needed to band together to have any chance of pushing their movement and see success (which yes means them and the games they produce making money), so it was smarter for them to organize events and band together.
But the focus is on IGF because that's where their "proof" lies. The problem is, their proof is not absolute and could even be considered specious.
Why aren't they going after the GDC? You know they operate pretty much exactly the same as the IGF, right? You know that the same people behind IGF are behind GDC, right? You know who that is? It's an industry marketing company. Oh no, the puppet master pied piper! Oh wait, that's actually pretty normal in business.
Why aren't they going after the Spike game awards? They're put on by allegedly gaming journalists, but they're practically more about promoting upcoming games than being a serious awards show.
The reason I brought up Penny Arcade is because apparently you don't understand that it's not that far off. An Indie organization pushes certain games because those games being successful means the organization does well, just like how Penny Arcade choosing an artist or two to integrate and promote helps both that artist and Penny Arcade.
Plus Penny Arcade absolutely has had a major hand in promoting indie devs/games, and they have incentive to since quite a few of the devs they've promoted have openly been big supports of Child's Play. Why aren't people questioning them? Why are they still so focused on some specific people? After all they're allegedly trying to root out all these gaming ethics problems. Why then, are they ignoring most of them that are both directly parallel and also even bigger?
There's a reason the world at large is rolling their eyes at this situation. At best, these people are being monumentally unaware of the world in which they live, and even in just the little niches within which they focus themselves. At worst, they're being every bit as nefarious as those they're railing against, and very possibly even moreso. The clear proof of the grand conspiracy against them is anything but, and at every turn they exhibit signs of their own ignorance if not their real intentions.