This also puts a burden on the organizers to grow sack and price their tournament entries competitively whilst guaranteeing prizes (any T.O. who doesn't do this doesn't deserve to have the players' support in my book).
This is probably the only point that I disagree with. Any T.O. that guarantees prize structure is an idiot, business-wise.
Pete Hoefling is no idiot, business-wise, and yet he gave away a full set of power even when an ice storm kept Richmond attendance below 60 people. Guaranteeing prizes means people know that no matter what, if they travel to an SCG event, the power cards are going to be handed out, which means more people take the time to drive or even fly to his events. Oh, and it means that people trust him and his store, which is not insignificant. If you buy cards from SCG, you don't have to worry, and that means more business for him.