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Some TDs really like the 'single elimination knockout in disguise' McMahon tournament.For example, in the UK I see a lot of tournaments opting for this. Maybe this is because they have so many of these silly 3 round events. Anyway, I think the wording is strong enough at the moment. One must assume a degree of intelligence on the part of the tournament director.
With 3 rounds, it is viable. With more than 4 round, it is usually impossible (or certainly undesirable). For most 5 round weekend tournaments, a top group of 32 players would contain more than half the tournament participants.