Although I know it will just provide another opportunity for people to complain about "exploiting" a system when they lose (some legit, some not). From a business and player perspective I think it is a good idea as it will draw additional participation.
However, I would say the ESO team should take note with how Eve Online conducted their tournaments (at least when I was a die-hard Eve player). They normally put a "point cap" on their participation for each team. The teams could outfit and bring to the tournament whatever they wanted as long as it did not exceed this cap. It provided a good balance and enforced tactics and strategy over perma-healing (repairing). Some teams went stealth, some went massive DPS, some relied on speed and some on drones (pets here). It was quite varied and you never knew what to expect. This was part of the draw. I was always something new and forced the corporations (guilds) to constantly refine or the next match they would wipe due to play adaptation to their previous tactics.
Another great aspect was that any player that wanted to watch the fight could do so in real time or after the fact. This allowed even veteran players to refine their tactics and learn new techniques. This was done via webcast and later ability to download the battles. It was also hosted with commentary. It made it very immersive. Much like the ESPN of space battles.
Now don't get me wrong. I don't have all the answers. I have no idea how they could implement such a point system in ESO. Perhaps via level, stats, whatever. Not my lane. All I am saying is that, in my opinion, Eve got it right. There are definite lessons learned that can be gained there.
If ESO gets it right, it could be absolutely huge. It would provide a whole new aspect to this game that brought new interaction, creativity, competition, and motivation.
If not, well, it will be time wasted they could have been fixing my WW...lol
Tagging
@ZOS_BrianWheeler since I have seen him in the Alliance Forums.