“Are the people in NH insane?”
Yes, but not just in NH.
I honestly fear that this country is going to have to go through some very ROUGH times, even more than the Depression, for people to stop having so much free idle time and government-supplied resources to dally away their free time with and have to get back to real basics like eating and having somewhere warm enough to sleep. No free time, no time for stupid BS like this.
Every single young woman and their parents in this scholarship program (The Miss America pageant is a scholarship program fundamentally) should be outraged.