A partial solution is a ribbon for the second most blue ribbon. The American Iris Society has a silver medal for most blue ribbons and a bronze medal for second most blue ribbons. Of course that will not take care of a 3 way tie.
I do not see any dilution. In a daffodil show not counting the reds may actually dilute. In the daffodil show there is only one blue ribbon per. There may be several blue ribbon flowers in a section. They all cannot get a blue ribbon.
Actually if you gave two ribbons for most blue ribbons, in an extra person would actually get the credit in the show results.