I don't think it's a big deal because mid-level players don't care about the money (seeing as how they've never won any before). The only amateur bracket tournament I ever entered didn't have any money involved, but I still fought my *** off and was really proud of myself for winning even though that just proved that I was the best of the bottom half of the tourney goers. Based on my own personal feelings as a competitor, I mostly just want to see how I rank among other players. The problem is the tournaments we run now only determine accurate ranks for the top 16/32. Below that, players get grouped with 40-some other players who they could have close, awesome sets with. I think a general goal of how tournaments operate should be to all players accurately, not just the top chunk of bracket. Obviously there's no way to actually get it as accurate as the top without playing an absurdly large number of matches, but it's also worth noting that the large majority of setups are just being used for friendlies during bracket up until the later bracket matches that have more hype with spectators. I think using those leftover resources for amateur brackets or something else that ranks lower skilled players would be much more beneficial for seeding at future tournaments, and, of course, more enjoyable.
Regarding this, and going a bit off topic, I do think there is a lot of untapped fun for low-to-mid players to have at tournaments. I mean, I'm sure we're already having tons of fun, but there is more to have. Playing people near your skill level is much better than getting your butt kicked by two really good players, then playing friendlies with people who may or may not be considered competition.
I think with a Global Melee ranking (or whatever is chosen to recognize players), seeding top players out of pools will be part of what comes with it. And with that spare time, it could be used for stellar amateur pools and brackets. It's really up to TOs, though, as to how that spare time is used.
Player recognition can also provide a set list of who to invite to tournaments.
I do think recognizing regional and national players is a must.
And I think having a Final Four + Rival is fantastic.
At (inter)nationals, where the top five players in the nation/world are attending, there would be a setup designated to take down the Final 'Five.' This could be done on a Day 1, when all these players will be seeded out of pools anyways, and it would have to cost the player trying some money - the money would go to the five players, prize money, raffle money/prizes, or whatever the TO thinks it could be used for. And to make sure it's not over-working the #5 player, only if you're a top 50 players or something can you attempt it; and attempts would only happen every hour or so (and if there are multiple players wanting to take out the Final Five, they have to play each other to see who goes).
Just some ideas.