While this has a marginal effect on the total number of possible hashes, repeated words are still an important consideration: If you can guess even one word that is likely to appear in their 1000-word dictionary, you can precompute the hashes for all possible variants of the corresponding phrase (that word repeated twelve times) prior to the contest, giving you a jump on other contestants.

I'd guess that we'll either see the rules revised to prevent this or see a dictionary filled with non-dictionary words.