I think you are giving people too much credit. Most people are conditioned to think of blogs as a personal opinion. It is not part of their thought process to assume that a blog might be an advertisement. If an average person sees a personal testimony ranting and raving about a product in some sort of banner ad, he probably wouldn't give it a second thought. But when seeing it in a medium that usually has little or no direct advertising, he will see it differently.
In my opinion there is nothing wrong with this advertising tactic, but I like the exposure it is getting with the fake awards. Hopefully it will help people think a little bit out side of their normal thought process.