Firefox started the week with SIX entries at pwn2own!! We shipped a dot release this week that made half of them withdraw. I got asked "Isn't that kind of cheating?" The answer is no - it is strictly better for contestants. Here's why.
If a contestant goes on stage and demos an exploit that we could have killed but didn't, then they go to the disclosure room. ZDI asks us if we know about the vulnerability. Duplicates don't count. So now the contestant walks away with nothing AND loses their chance.
If we kill the bug ahead of time, sometimes contestants have a backup bug. Sometimes they're just really extra and decide to find a bug and write an exploit the night before. (I forget if it was Dino or Charlie that did this...) Either way they have a shot at something. It would be underhanded to hold things back that we could have patched.
(By the way, of the three remaining entries, two withdrew today...)