I kinda like that idea. I knit and I've noticed that a lot of people have altered designs they found in Stitch & Bitch and I think that would be a good theme for a challenge. You could use the idea from the book as a guide and then add your own spin on it.
I like this idea, but I think there would be a problem with the knitters all submitting SNB stuff...there would inevitably be duplicates...then how do you judge? Maybe the person who does the best "spiffing up" of the project...??
Um.. Kinda "Been There, Done That" with the S n'B books on Craftster. Which is why I excluded them (including the most recent crocheting book) anyway.