I don't think such a setup is recommended, although I can't come up with a real danger yet (attackers could jam up your queue, dos your servers, etc., but this doesn't seem too critical).
As you said, you must create a "test" account that your actual users will be logged in as in order to submit. Instead of giving everyone the password you could try triggering the auto-login based on the IP address. The easiest way I can see to achieve this is to put a proxy in front of your CWS but *not* set num_proxies_used configuration key. This way CWS will think all requests come from the proxy's IP address. You then just need to set autologin for your test users for that IP address.
Also, consider instead using the newly-introduced auto-registration feature: users will be able to create their own accounts, without you having to do anything, and this will give each of them their own "space", with their own list of submissions, etc.