I completely agree. This needed to follow Rockstar's format - not stupid American Idol's.
I like the idea of everyone getting the same script. it would be interesting to see all the different interpretations, and it would really give the non-cinephiles in the audience a lesson in just what a director does.
I also agree that expecting them to write as well as direct is a bit much. At the very least, they could give them loglines to follow. This is how they could have followed the Rockstar format - instead of songs, log-lines.
I'm still wondering (as I said somewhere above) how the heck they're going to decide who gets comedy and who gets horror next week. Maybe they'll finally do it like Rockstar and let them decide? Yeah, probably not.