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@danwentskiing
I just wrote a massive overview of the fors and againsts, but accidentaly deleted it. So, I guess the most important thing is to think of the alternative that other cities use: individuals form teams, and then battle it out at qualifier games to decide who goes to the popular tournaments and who doesn't. If one of those individuals quits/moves city/gets injured etc etc, that team can ask any other player to join them, which allows players to move around.
The reason I suggested seeding was that I think the above system works really well for the more experienced/talented players, and the ones in established teams, but really poorly for newcomers and those who are really focussed on improving their own games, as they may be stuck in a less-talented team for a long time.
However, seeding can be bad for some of the middling players, especially if they're looking for form strong player-relationships with other people around them. Also, maybe taking choice out of the equation is a bad thing, and whenever a new player who shows commitment (I'm specifically referring to N3il here) arrives, we should really re-seed everyone, which is time-consuming and annoying at the best of times.