I really enjoy participating in game jams, and as I said in my previous post, I'd almost definitely participate if Scirra were to run it, but I'll probably pass on this based on how it's is shaping up. There are 2 main reasons why.
I think the drawbacks far outweigh the benefits of limiting the events and layers. I understand that this is meant to even the playing field so that participants with a paid C2 license don't have an advantage, but is severely limits the complexity of a game. Also, I'm guessing it will pigeonhole participants into using behaviors. For example, with a 100 event limit, you could make a decent platformer because there are behaviors that replace having to use events, but you'd have a hard time creating a point and click adventure game, or really any game that doesn't have corresponding behaviors that do a lot of the work for you.
I'm not a fan of the entries being judged by a handful of arbitrarily selected people. I don't mean this to be a jab at you or the judges you select, but with so few judges, the results will be weighted towards their personal preference as to what constitutes a "good" game. I think letting the participants rate the submissions is a far better idea.
I'm hoping that Scirra puts together a C2 game jam at some point. I'm sure they come up with a very well thought-out method to running the event. A lot of the submission and voting could probably be handled through the sexy new arcade. I'm guessing there would be a good number of participants, especially if they made a blog post and/or pinned topic in the forum.
That's my 2 cents anyway. Best of luck running the event, and to all the participants. I look forward to seeing the end results!