I googled around to see what other people are doing. The zebra folks do a free and a paid version of their product, with only the paid for version having proper traceable code signing.
In the end they went for providing a root certificate that users could download and install to allow the use of a self-signed applet. Since it is now possible to state that the applet must run in the sandbox with the latest version of java, it would be possible to specify that entrants must include that in their contest entry, which would reduce the risk of rogue code, as sandbox escape exploit code would need to be included. (This would also help with the previously mentioned reputation issue)
There’s quite a long thread here: http://code.google.com/p/jzebra/issues/detail?id=155