Bro, I was talking in perspective of 'encouraging' all the story writers, for which that rule suits the best. Anyway, even your argument is a worth notable cause there is no harm if he deserves it.Can I say something despite being a normal user?
Why the stories shouldn't be nominated back to back? If they deserve it, they should be. No point in less deserved story winning the competition. And, I don't know why SOTQ stories be those which won SOTM. There can be a story which never won SOTM but goes on to win SOTQ. Go Tigers Go! is a top of my head example.
There is actually a lot of thought put behind nomination of SOTQ stories. And, one thing is for sure only the deserving stories are nominated and hopefully deserving stories win.
But in my opinion, we should encourage more people by getting their stories & efforts they're putting into limelight, as this is a competition run for 'entertainment & fun'. It might be just a silly competition, but a story writer would feel happy, if he gets remunerated with something for his continual efforts on a particular story.