I don't think it's unfair. I think that handing out awards when they haven't been earned is unfair because ultimately it teaches our children that they don't have to stretch and strive to achieve because they're going to reap the benefits whether they are successful or not.
I was a soccer coach and got crucified by the parents and by parks and rec because I didn't hand out trophies at the end of the year. Why would I hand out trophies? They didn't WIN A SINGLE GAME? Giving them trophies for losing is insanity!!! BTW, my own child was on the team in question so it was double jeopardy for my principles here.
I expect my kids to grow up to be gracious losers as well as gracious winners. I expect them to be able to handle failure as well as success and to learn from their failures. I expect them to realize that doing their own best is it's own reward and they can't always expect external rewards for the things they do. They should do things because it's character building or because it hold some intrinsic value, they should not go into anything EXPECTING a reward. They also need to grow up humble. They need to understand that no matter how good they think they are at something, there is always someone out there that is better. I want them to be proud of themselves, NOT prideful. There's a difference.
Not allowing children these lessons in life can have serious repercussions down the road if you ask me. The world our children live in has been too "sissy-fied" if you ask me. I am NOT raising sissies. I am raising boys that will be competent, confident, gracious and Godly MEN.