As interesting as the challenge is on its own accord, just by title, the most interesting aspect of this particular challenge is the highlight that it points right at you. Right at your development methods, your chosen tools, your skillset, your choices. It all comes down to you - and the post mortem.
I have posted mine, you can see what I came up with and didn't over at this page.
Another really interesting thing to do is to record yourself working, using a nifty tool like chronolapse. It captures frames at given intervals, and stitches up a movie so you can see what your workflow is. If you see too much anime, movies and web pages you can adjust your workflow accordingly ;) I only captured one day of my working but it is still interesting for me to see. You can see it on youtube over here.
Now, my entry to the competition was supposed to be a few things. But one thing i chose up front was to design something i could cut and cull everything until the core prototype was left. And... that is basically what happened.
I had to decided to work on a platformer game, that mixes gameplay with a point and click adventure game. A Use/Look sort of interface, but with the constraints of reach. You can see a switch but can you reach it? If not can you jump up and reach it instead. I had prototyped the mechanics and i enjoyed them, some obvious oversights (using platformer AND mouse is commonly an awkward scheme) but i kept at it. I decided to draw some levels in a fixed viewport, and just cycle through them, for simplicity sake, and the levels came out something like this :

The first step in my usual workflow is to prototype, and then implement the required tech (like collision boxes in a level file definition, and triggers with callbacks) which i did end up doing. More notably, i was using my own engine that i have written over the last while which was extremely interesting to me.
Laboratory Gamelab and its current status
Using the engine first hand in a really huge rush was enlightening. There were a lot of interesting logic issues i had made without knowing, fixing them along the way, and carrying on with my goals. The 'fixing them along the way' part took my time away for finishing as much of the game as i wanted but the cost to me was way worth it.
I have a working basis for a lot of really cool flexible code. None of the code i have made during the competition i could use (it is real ugly) but it gave me so many ideas and actual test implementations. That means that the tech for actual game specific stuff is well on its way.
Short term goals
1) Particle type system.
This is going to be really fun. I have some pretty cool ideas for this, combining my multi threaded base layer and event queues, i think im gonna enjoy this one a lot.
2) Finalise the file system and resource manager.
The current filesystem can only store and index files in an sqlite database. That misses the entire point of what i wrote at first, where the actual filesystem stores files using lzma compression, and encrypts the files on their way to the database using GCM AES public/private key encryption. I have moved this code around so many times, and with more reading into file management efficiency from (see www.gameenginebook.com) i have decided to just finish it. This "finishing" will include the network based updates if i can manage to get the server side in JS.
3) Get the server side in JS. Current the server is in C++ and i have prototyped a node.js version of the server succesfully. While i would love to go ahead with it, it does require a linux server which until that changes - isn't all i need. Instead, the server will be a stripped down core engine with its main function handlers exposed to the scripts as the current game engine is. This will mean parity for coders and similar tools/syntaxes across the bpard.
Finishing the LD game
I have plans to finish the 12 levels and the boss battle. The level tech is implemented, and it's a matter of adding trigger callbacks and collision rects. I have also spent more time polishing the intro sequence and game story.

Some more laboratory news later. If you would like to see the engine and the game in action, you can download a version over here