I didn't intend to suggest that the ECMAs are equivalent in all ways to the WAMMIES. I have never been on the inside of the ECMA selection process, but I haven't heard of winners who thought they didn't deserve it.
In the Entertainer of the Year category, which is an audience-selected category, Great Big Sea's fan base was so vocal that they won for years, and they finally took themselves out of it to give others a chance. There was also a small controversy among first nations artists when a guy won who was an elder, but who played essentially Scottish-style fiddle. Some in the community didn't consider it to be within category.
The point of the ECMAs is that they have a full-scale music industry conference (similar to Folk Alliance) and a big glitzy award show that is on national TV. This is totally beyond the scope of the wammies. It is a big deal for the regional music industry, and incidentally for the tourism industry too. While you may be right that the competition itself is a down side (who really knows if one singer is better than another?) there are too many upsides for them to stop.
As for Ryan's Fancy, they got exactly the kind of award you describe and it is indeed deserved.