LDCs are simply for fun, but because it's a contest people naturally get competitive.
And even more so if there is a prize (in this case, a fancy medal in your profile for good reputation).
Still, the whole level designing scene goes through phases like this at times and we just have to push ourselves to get out of them.
I mean, people high in the tier list didn't start off perfect, they were all newbies at some point. And they pushed themselves and worked at their skills in order to get better and that's why they're up there. We all started the same, whether it was in SM63 or another game etc.
Me, I began with a level with enemy spam and bad graphics. While the castle itself was quite cool, there were maaany flaws. But I had so much motivation that I worked myself to making it where I am now. I entered every single LDC after the 13th and worked really hard at every level. (even my 22nd LDC level) I usually had a really great time making them too and I spent time on them, usually the whole deadline.
Also JSlayer, I believe it was in fact Cryo who proved everyone wrong since the first level he ever made won the 8th LDC.

But still, who knows if he'd started level designing anywhere else? And King had practised for ages on the portal before he entered an LDC.
But just a message here- the thing you must never, ever do in level designing is give up. I joined Runouw called missperfect23, a run-of-the-mill noob except with an interesting name because I happened to be noticeably female. I didn't know a single thing about level designing. Three months later I'm promoted with the name I have now to a level mod and a year later I am promoted to a global mod and end up reaching the top 3 in level designing. That didn't happen out of luck, y'know.

That happened because I worked at what I did (and being good friends with MoD helped

).