Demoscene Feasible?

For those who don't know what a demoscene competition is, it is a competition that melds computer science, arts and culture. Teams consisting of coders, graphics artists and musicians come together to create a "demo" - a combined multimedia showcase of their best talents. One of the best known demo competition is Assembly http://www.assembly.org/ who has annual sponsorship from the likes of Microsoft, IBM, HP, EA Entertainment, Id Games. Many past winners have gone on to work for these companies.

Here are some demos from last year's (Assembly '06) winners:
Browser (Flash) Demo Winner - Who Killed Travolta?
64k PC program Demo Winner - Dead Ringer
PC Demo Winner - Starstruck

I was wondering, would SL be a good venue for holding its own demoscene competition. We could pit teams of builder, graphics artist, scripter and see how far they can push SL technically as well as artistically. What do you guys think?

This sounds like great fun, and resonates with babbage's blog post, http://blog.secondlife.com/2007/06/18/slorpedo/ . But... ... does the punishment fit the crime?

Isn't all of Secondlife already a demoscene?

Yes people are constantly coming up with cool stuff, but very few are pushing the limits of what is achievable with SL, both artistically and technically. And even less are exchanging ideas (mostly because there is no common avenue).

Here's what I envision:
Given a 32x32m plot of land to play with and a single prim that starts your the demo on touch, what spectacular can you create in SL that makes even the most experienced scripter, builder and artist go "Wow, how did they do that!"