Giving away things for free that were for sale the year prior is not a good idea and simply won't happen.
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Well, your concept of "giving away things for free" and mine are very different... I don't see grinding for days to get seasonal currency (which is what candy really is) for redeeming prizes as being given away or free.
If you guys really see an issue in throwing old, public hat shop hats into a pool of seasonal rewards, then I think you're always going to be overworked and/or underappreciated when it comes to the community's opinion of the event, and it'll always be because of the quantity of prizes available.
I'm not complaining about the event at all BTW, just trying to help give translated feedback of what I think many other people are wanting to say, except for them it comes out as "DURRR, DIS EVENT SUCK."