The largest benefit is that it allows them to run it how they choose.

The largest difficulty that I have seen with many online judges is that they 
introduce an artificial timelimit that the server needs to execute the code 
within.  Codejam lets the users handle the code execution client side, 
therefore removing all of the artifical "timelimit exceeded" errors.  You don't 
need to know that your Java solution is going to run about 1.5 times as slow as 
your c/c++ solution or that your c/c++ solution is 10 slower on the server as 
it is on your PC.

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