To your first question: nobody but the winner herself/himself can go through the process, it is not possible to give it to someone else.
Your second thought: there are more than 110.000 person (DV 2004) considered for issuance of an immigrant visa, but not all will receive it. Actually only 50.000 will finally receive an immigrant visa, hence even if all the winners would fail to apply proper or just decide not to go through the process, there are plenty others in line.