So it's an intellectual property thing?
Aside from anything having to do with minecraft, the same server is likely used for everything from the website to launch and even the game engine. Even though the selected individual would only be using the minecraft folders, he or she would still have increased access to the rest of Wooty's projects and the code he has written to run them. A non-compete is merely a way to provide security insurance for Wooty that would hold up in a court of law in case said individual stole programs that woot has written and used them for his or her own economic profit. Although the chances of anything like that actually happening is extremely low, it is good business practice to always be prepared for the worst case scenario. Wooty is an independent software developer trying to make a living like anyone else and he has to protect himself. I would be wary giving anyone else access to my work just the same. It is not as simple as just selecting someone to do the job. A level of trust has to be there to make wooty comfortable with his decision. After all, this is a risk he is taking.
From an online legal source:
"The rationale behind noncompete agreements is an employer's self-interest. Typically, companies invest heavily in the training of their employees. Similarly, they have an interest in protecting their customer base, trade secrets, and other information vital to their success. The noncompete agreement is a form of protection against losses. The company does not wish to invest in an employee only to see the employee take the skills acquired, or the company's customers, to another employer. Thus, when hiring a new employee, the company may make her sign a noncompete agreement as part of a condition of employment. Likewise, the prospective purchaser of an established business may only buy it if the current owner is willing to sign a noncompete agreement."