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Great idea - is it open for anyone in the world, or is it geographically restricted?
We're open to anyone, anywhere in the world. :)
What do you get in return for all of this? As I read it the person who signs up gets to work with you two, plus they get the $500 in credit at tweaky.com, but I do not see what you guys are getting out of this relationship. I am not trying to troll, I am just curious.
We want to show people how easy it is to use Tweaky to hack together an MVP.

Out of this we'll build some case studies we hope to get PR out of and hopefully that will lead to more people coming onto Tweaky and purchasing tweaks.

We don't take any equity in the businesses or anything like that.

That sounds like a good deal for both parties. I wasn't sure if you guys would be taking equity in the businesses for the $500, which is why I asked. Thanks for clearing that up.
I think it would be wonderful if there was some sort of rapid and easy framework for mobile apps, like WordPress is to web sites. Just throwing that idea out there.
Is this open to only web startups?
Not at all, in fact we've had a couple of applications for physical products - definitely something we're interested in.
What you provide seems very very trivial for any web programmer. How you explain that this service adds some value for a company?
Tweaky is for small business owners and non-technical people.