I voted for the latter of the two options. It's my personal belief that the more games a team can play, the better, regardless of arguments as to how only the "best" teams should get in. If (just as an example) TJ A makes a tournament's playoffs as the #1 seed, then they are as responsible for losing a match to #2 Dorman as they are for losing to #(n/2) Podunk.
University of Kentucky CoP, 20XX
NAQT writer & subject editor, PACE member (former President, current At Large member of Board), hsqbrank manager, HSAPQ freelance writer, former hsqb Administrator/Chief Administrator, 2012 NASAT Tournament Director