I agree with what others have said, there is room in the quilting world for every one, and if kits are your thing, there is nothing wrong with them. If you are not comfortable with selecting your own fabric, then a kit is perfect. If you don't have time to select fabric and cut it out, then kits are a timesaver.
I usually don't like kits, because if I'm going to take the time to make a quilt, I don't want it looking like 100's of other quilts. Granted, not all kit quilts will look exactly the same, but I enjoy picking out my own fabric. I could spend hours in the quilt store looking at all the fabric, and selecting just the right combination.
I have only purchased one kit the entire time I have been quilting. And the only reason I purchased it... I loved the fabrics. It was for a very simple quilt pattern called Take 5. I added some more fabric to it, and made the Take 5 gets the Point. So even if there were other kits with the exact same fabric, I made mine different than the others. At the time I purchased it, I just wanted to make something simple, and not have to think too hard about it, but just wanted something to allow me to keep working with fabric.
I don't think I would ever enter a kit quilt into a show, but then it would depend on the purpose of the show. If it was a local shop that wanted to showcase some of it's classes and what the students have done, then of course there would be a lot of the same quilts. I would enjoy seeing the same pattern with different fabric and color combinations. That helps me learn what works and what doesn't, instead of just using the colors I'm comfortable with. And it always gives me ideas for other quilts I would like to make.
Diane in Colorado Springs