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This is one of those times where you have to encourage your kid to miss out on the honor of appearing to be the best student by having her gain real knowledge and experience instead. In my opinion, it is better to have a real education and no award, than an award and a half-arsed education to go with it.
Agreed! There is a Latin phrase which applies here: "Esse quam videri" meaning "To be, rather than to seem (to be)". It has been used as a motto by a number of different groups including the State of North Carolina.

Fortunately, more college admissions seem to be taking many factors into account rather than relying primarily on GPA.