A participation medal is no bad idea at all. We have seen it with the winter workshop event aswel.Maybe the medal just being for entering makes it pretty meaningless, i'd say possibly make it for getting in the showcase.
It still has a meaning which is that participating even with bad things is still better than not at all. Not everyone can dedicate the 72h for it, so they already are going to be capped at maybe just 16h. For those it would still be nice if no status was attached, as that would make it feel like 'i never had a chance'/'i dont have a chance'. From most 72h contests i often see the same list of contenders getting quite far. Yet you want new people to enter.
I like the new 72h format as its free for anything you want. I cant get the time to make an entire map in 72h (hell, finishing a small map easily takes me over a year), but i do have the time to get a popfile in a state it would be playable and maybe even have its major problems removed.
You can make it as hard as you want, but the idea that you have a chalenge is what the 72h should be. Wether its easy for someone else should be irrelevant. Thats why the removing of the contest part was ideal. Now you can set a chalenge you think is reachable. And even if you failed it, you at least dont have to worry about being a loser. Everyone is a winner!