Then again: their rules. For other rules: other contests.
Must agree with da wolfie here. For those wanting more horsepower, try MRC Challenges and/or Passion MSX, so why complaining about MSXdev specs? If we move MSXdev to MSX2, MSX(1) games wouldn't be supported by any contest (as they are at MSXdev), and we can live the same situation as years ago (no MSX(1) games). So I say: let MSXdev contests live as they are. Dammit, they really bring lots of fun each year! 
I on the other hand tend to argue that most of the bits 'n bytes of a large game are made out of artwork, which may -depending on the person who makes it- take little time to make. About 40% of MJTT is music data, just to name something. I was able to make a complete MJTT level tileset in an evening and there are countless more examples why artwork may consume tons of memory while not very labor intensive to make and while not being out of place in the actual game.
Princess Maker could eat lots of memory because it has lots of pictures, but I still I hope someone could convert it to MSX1 as Mega or two-mega rom. Game itself is simplish and that´s why probably easy to convert, just redesign graphics to screen2. 
Princess Maker for MSX-1 !!! Princess Maker for MSX-1 !!! Princess Maker for MSX-1 !!! Princess Maker for MSX-1 !!! Princess Maker for MSX-1 !!! .................... 
just redesign graphics to screen2
And you think *that* is easy? 
Yes I thought so... 
Viejo, after seeing your "Los Archivos", I hope you can get your teeth again into:
* MONSTER BASH - hope you can start this again, arcade is just too cool to leave without MSX conversion! Maybe you can now use "Moon Over Arba Minch technology" 
to use arcade´s digitized sounds! 
* FORBIDDEN PLANET - I really like to see Freddy Hardest in some MSX STYLE game, not Spectrum style I have always really liked Freddy´s Hairstyle!! thought you meant NON-scrolling game, as it uses Infinity engine, but I don´t care, just do MULTICOLOUR FREDDY HARDEST IN FORBIDDEN PLANET!!! Please add there 1950s american B-movie monsters and saucers and effects!!!!!!
* KITTEN KABOODLE - STILL waiting decent MSX-1 conversion of PENGO! Garbisoft´s almost monochrome IGLOO is nice game to play, but lacks colours and is bit simplified too..... So please make this!! Of course I prefer PENGO/PETCH than clone with different graphics. I am sure that you can make almost arcade perfect PENGO!!
* LITTLE KNIGHT´S ADVENTURE - Guess what?! I have hoped years to see Alex Kidd (or it´s clone) on MSX-1!!!!!
* MALAIKART - still hoping to see some low-resolution fast racing game on msx, even if player if low-res too! (thought I prefer player is multicolour sprite, don´t care if other drivers are low-res) It would be nice to see how fast FULL-SCREEN low-res racing game is possible to make for MSX-1.
* RAINBOW ISLANDS - need no explanation!
* THE NEW ZEALAND STORY - same as above!
* XFERE - looks nice! Is it graphical test for "multi-directional" Trailblazer or some different collect-stuff-with-ball game? Surely there´s no equivalent game for msx-1!
* GHOSTS ´N GOBLINS - whoever was making it, I hope he continues his project!!!! 2006 scrolling demos were just more awesome than words can explain!!!!!!!!!!!
Hey, MäSäXi! I guess I will have a "little" MSX developing downtime for a while, so you'll haev to wait. Anyway, who knows, surprises could happen, just remember Night Driver!!.. But better keep on the lack-of-entries-at-contests topic, which I think is quite relevant . Ah, and thnx for the positive feedback!
Viejo, after seeing your "Los Archivos", I hope you can get your teeth again into:
* KITTEN KABOODLE - STILL waiting decent MSX-1 conversion of PENGO! Garbisoft´s almost monochrome IGLOO is nice game to play, but lacks colours and is bit simplified too..... So please make this!! Of course I prefer PENGO/PETCH than clone with different graphics. I am sure that you can make almost arcade perfect PENGO!!
Pengo will be released probably next year for Paxanga Soft, wait some months.
(it even has musics finally - /me grins to someone here 
-)
@viejo: Making mockups is always more fun than completing the whole thing I do hope you manage to find the time and motivation to work on some of them. These screens prove more than once that MSX1 can have superb looking games. Al that is needed is inspiration and skills.
The specs cannot be the problem. There were and are other competitions, with much higher specs, but with the same problem.
I'm relatively new to the MSX-scene so at the time there were no other competitions...
All I could find was MSXDEV...
later on the Passion MSX2 appeared. By then I already entered MSXDEV. And I must say regretted it at once.
I come from the GBA scene so am used to games with lot's more animation for example. This can be achieved on MSX1 as well but you'll need the extra bits....being limited in this will produce a lower quality game then possible (my opninion)
We might drop out the MSXDEV'08 because we can't live up(or rather down) to the lo-down specs. And we'll finish the game outside of the competition, which is a shame because I like competing against the best...(it's in my nature and it motivates me)
But the "problem" as you stated *MIGHT* lie in that new games are not praised as much as before (?) and developers are not properly motivated to keep going...