1) I don't know, I wasn't really involved in that. Just like the range contests as a whole aren't really managed by a single person, these contests haven't been either. Each one's been managed by a different person. Honestly, I'm not too sure what the distinction between the two types of contests is anyway XP
2) If it's not allowed to be here then you can take it down from this website. This is the second contest of this type, and the first one was certainly touhou themed, but I can understand your logic. Personally I see this to be in the same vein as RaNGE 9. But if you don't want this here you're obviously free to remove it.
The theme is "people from the outside world have entered Gensokyo". It's meant to be a danmakufu/scripting contest, and I wanted to give all the scripters in this community a chance to participate, not just the ones in that smaller group. Though as I said, I can understand your reasoning as to why having it here isn't okay, if you decide to remove it.