It's just different parenting styles. I'm not condemning anyone and I don't think you are either. But some of us want our kids to learn correct values. What I told my kids is this: "Do you know what reward I get each day for just showing up for work? I don't get fired." They've also seen my trophies and ribbons for first place in many competitions. Anything other than first place I threw away decades ago. This is what I want them to learn, that striving for best is better and when it's achieved, then you bring home a trophy.
I understand that and perhaps competitive people have competitive children. However many people aren't that competitive, they don't want their kids to be ruled the whole time by looking over their shoulder with envy, they're fine earning not so much money and doing their job and going home.
The issue here, I'd say, is about society in general. Participation trophies. I don't have a problem with them, I don't like them. We had some competition for kids and one kid, about six years old, was ecstatic with his medal. The other kids knew they'd lost. This kid didn't care and it made his day to go home with one.
So the giving of participation rewards isn't so bad, even if I don't understand it. What I find strange is that kids didn't win, and then the parent went and did something so negative that it makes no sense. The kids went to a competition, they did what they did and they got what they got for that. To then say "oh, sorry kids, you did this and received what you deserved to received but now I'm taking it away" is just weird.
I'd bet the father is UBER competitive and pushing his kids so much that he's causing all sorts of issues. Maybe I'm wrong. But I doubt it.