I don't think its a problem, but they have said they prefer to do as little work to the submitted models as possible.
If its an amazing model with very little work on their end it has a decent shot at going in.
If its an amazing model but needs a lot of work, it might make it, but probably has to be more that much more amazing than a completed model.
If its a mediocre model its not going in, no matter how complete it is...
So the more complete you can make it the better the chances, still its never a guarantee.
I sent an OBJ and TGAs for textures when I submitted the Pain Train, so it's certainly possible to get non-compiled models in the game. It's a lot less likely, though, for the reasons Mark outlined.
Replies
If its an amazing model with very little work on their end it has a decent shot at going in.
If its an amazing model but needs a lot of work, it might make it, but probably has to be more that much more amazing than a completed model.
If its a mediocre model its not going in, no matter how complete it is...
So the more complete you can make it the better the chances, still its never a guarantee.