Why do scholarships want these strange essays all the time?

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Why do scholarships want these strange essays all the time? Is it just a deterrent to see who really wants the money? Are these things worth writing in mass? Because I can see applying for 10 scholarships with 10 essays as being very time consuming.
 
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Do you expect them to just hand out money? It's not much to ask for to get some money.
 


Maybe the scholarships want to give out money based on your experience with the people giving out the money; for instance, if the scholarship is not academically driven. Then how do you know who deserves the money? Essays are easier than an interview.