The ISP for melee actually has a lot of positive effects, like balancing the game a tad (marth, for example, relies on his forward smash a lot, so he can't use bashing items very effectively.) The fan helps people who need better combo starters to use their good moves (ness, zelda, etc.). In addition you could do so much crazy **** it would be amazing.
You can work around the luck factor, but it's still always gonna remain there. Thats why an ISP tourney should be a smaller one and have a small entry fee, like 3-5 dollars. No one wants to chance losing a bunch of money because a bat spawned while they were recovering and the other player threw it at him.