I agree with a lot that's been said already--especially about the time constraints and the final winner being selected by a "celebrity" (and I use that term loosely--I'd never heard of that Nancy O'Dell person until this show) who had no history with the contestants.
This is what I'd propose: I'd have a 2 phase period show. Start with the 12 contestants, and whittle them down to six. Then, have five or six more challenges, not eliminating anyone, but giving scores. The scores would then cumulate over those weeks, and you'd have your top 3 based on skill and overall performance. That way if you totally suck at one thing challenge, but are otherwise good, you can get to the top. And if you suck almost all the time, but for some reason do well on one challenge, then you don't screw over some other guy who has done consistently better than you.
Also, after shopping today, I'd totally lose Michael Kors. Until now I was o.k. w/his lines but I keep seeing these gawd-awful purple/black/tan faux snakeskin print on stretch fabric pants AT EVERY STORE. They're hideous and I don't know if I can forgive him for the trauma!