No Good Deed Goes Unpunished

I have control issues, I guess.
I live in Glen Carbon, IL. Each summer our little village celebrates "Glen Carbon Homecoming." It's kind of like a street fair - carnival rides and games, etc. So I thought it would be nice to give it a graphic identity. The village events committee agreed and I donated my time and skills to create this sort of logo for the event. I gave them the graphics files and explained what each file should be used for. Some versions work best for web, some better for print, and some better for being cut in vinyl. As my boss says so eloquently, "It's like throwing pearls before swine." Every time I saw it in print or on the web, it was distorted and/or pixelated! I was not happy. Because after all, I put a lot of time and effort into the design, only to see it bastardized. And a lot of my friends/coworkers, etc. knew I created it - and it looked awful! So the village wants me to update the logo with subsequent years - all the way up to 2011 (I think they believe the world is coming to an end in 2012...) and I'm leaning toward not doing it. Bad thing is, they'll do it themselves and it will look even worse most likely. What to do, what to do...