People still do this, many people actually. I'm one of them.
There most definitely is still a photography industry. It's ever-changing and certain companies utilize it a lot better than others, but I wouldn't say it's dying or that something like this would kill it. Here's my two cents:
This is a neat opportunity for anyone who has some good shots and would like to contribute. i whole heartedly agree that some form of credit or a link to the photographer's website should be given. However, there's no revenue they're going to generate by offering free wallpapers for site visitors to see or download. It'd be one thing if they're using these photographs as marketing material, but according to the original post they're just asking if anyone would like to contribute some wallpapers.
I know when I was 15, first reading this site and first getting into photography I would've jumped on something like this. Why not? If it's good enough and they use it as a wallpaper, it adds some credibility to your work. It may not be a big thing on a resume, but it's still cool.
Now, if these photographs showed up in something the photographer didn't originally agree to (advertisements, promotional material etc.), then there'd be a problem.
No offer was made for a photo credit so how are they going to get noticed. So a budding photographer wanting to market their work won't get that "lucky break".
BTW as you proved in the fantastic thread of your photos, great shots are a result of experience and very hard work. If someone wants to reproduce any of the shots, you should get paid for the very hard work you put into those. If not pay, then at least a credit.
Not a single shot on the link provided had a single photo credit which means KI paid someone to shoot them, or for the rights to use them uncredited.
I sincerely doubt that KI paid someone to specifically come in and shoot photos that could be used on their site as wallpapers. The ones they already have were probably grabbed from marketing/event shoots they hired a photographer for. However, if people are just contributing wallpaper images then I don't see a problem especially if they're getting a tour in exchange. It's something fun. I'm sure Don could walk around the park a few days in the summer and get some good shots and I know he has in the past, but why not let some KICers contribute something cool? And in exchange you get a backstage tour for you and some friends. I think that's reasonable compensation for some background wallpapers.
There's a fine line between a few good shots that people contribute from here as wallpapers and professional work. No offense to anyone here, but if the park wants/needs something professionally done they'll probably hire someone for that job and I doubt they'd hire someone specifically wallpaper images. They could just not have any on their site and the world would go on just fine.
Like I said, they said it's just for wallpaper images. If it was for something bigger or an ad campaign, that'd be different, but if it's just for wallpapers - no big deal.