I'm delighted to say that Woman's Own have taken on board the huge number of comments they had about their competition, and have decided to offer £200 to the winner. It's not a huge prize but it is far better than expecting any writer to be happy with just publication. I'm glad that they listened to us and that they were big enough to rethink the terms of the comp.
Go to the WO facebook page and scroll down to find the post beginning 'Calling all budding authors' for the full story.
We can remove Woman's Own from the blacklist now. Well done all for exerting enough pressure to get this changed.
Edited 20:17 to add - on another facebook page Simon Whaley mentioned he had emailed WO to ask about rights for this competition, and received the reply that they will only take First British Serial Rights for any story they publish. So rest assured, the comp is not a rights-hogger.