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I would like to suggest that maybe you might want to consult with the 'Saw Lady' - http://www.sawlady.com/blog - though she is in New York City, she is one of the buskers who were on the MSG TV show. Through her blog you can see how connected all the buskers of her city are. Maybe she would have an idea...
And yes, I agree - more publicity for any artist could never be a bad thing.
A crowd-powered competition however is more participatory, and lets the network effects between different players happen transparently and spontaneously. In reality TV, if you lose, you're quickly pushed off the show, and viewers will be actively encouraged to forget about you. On the web however, it costs virtually nothing to keep all content online indefinitely.
In fact, the kinship between players that Michelle is championing happens naturally in online competitions. I've seen it happen up close myself, both from the inside and outside.