The awards don't matter on the level you reached, but only on your score. When you have more than 250.000 (which is the normal score after you completed the game), you won't get any higher award.
After you reached the score 999.999, this is resetted in the counter, but will be displayed in Hall of fame after the game is over.
We tried it a lot, so we got 1.000.000 in the first level (and got 8 lives). We found an interesting fact: If you use your Inflate-explode ability, it normally decreases your pliability with each explosion. But in this case the pliability started to decrease after 10 explosions. Maybe it is due the big ammount of absorbed babies?