I think people that give that "prize" do not quite understand what research and science is.

They really do -- they are the editors of the science humor magazine "Annals of Improbable Research". But I think part of the issue is the the name "Ig Nobel" which implies that they are claiming the science is bad, which they really aren't (in general). From time to time there are occasional awards that are given as a criticism, but most of them are in good fun and the awardees aren't insulted by the award at all.

The focus also changed, way back then the Igs were awarded for discoveries "that cannot, or should not, be reproduced". Over time they changed to "honor achievements that first make people laugh, and then make them think".

If you are in Boston next year you should attend. The show isn't mean-spirited at all.

  way back then the Igs were awarded for discoveries "that cannot, or should not, be reproduced"

Could you be thinking of the Journal of Irreproducible Results?

The Annals of Improbable Research is actually the descendant of the original Journal of Irreproducible Results -- there was an argument with the publisher in the 1990s and so most of the staff left to create the new magazine. The Igs started in the JIR era.