Cindi's comment about the very advanced quilter winning all the ribbons makes me sad. Not just for those who aren't entering because they have no chance of winning, but also for the talented quilter who's satisfied being the big fish in a small pond.
The guild needs to find a way to encourage her to spread her wings and show her work at shows where the competition is at or above her level. Doing so will help her grow as an artist, and perhaps when she doesn't win any ribbons competing against "big time" quilters she might get an idea of how those who compete against her in the local show feel.
I believe that if you know your work is exceptional you should bow out of competing against less experienced and/or gifted quilters. It isn't fair to them and it isn't good for you.