Well, then I just disagree deja.
To encourage work like the dick-Bishop would be to pull it out of a class project and, without precedent, put it on public display. To allow work like the dick-Bishop would be to include it among the other winners if it merited that. Subject matter is of course subjective...
So it was a contest of sorts. To disallow someone's art due to subject matter alone, would have been stupifying to the people that actually participate in art's development...
Now, it's merely stupifying to the people who's only participation in the art world occurs when they voice their displeasure or can score political points off of same... and I don't think that should rise to the same level of consideration.
Public funds and display at the city hall is a whole nuther ball 'o wax, with its own set of criteria and realities... This aint that.