Ruby, while I definitely like the idea of doing swiss to seed, there is no unwritten law that states that if two players are tied the round must be extended. Especially in chess tournaments where games could be 1-6 hours long and time constraints prevent that. I have definitely seen a blitz match playoff if there were multiple people tied with perfect scores (5 minutes each player). But at the same time I've seen tournaments where they just used standard tie breakers and called it a day. In Melee however, it would be a lot more practical seeing as how with enough TVs you could run a round pretty darn quick.
In competitive TCGs, this IS a rule. I don't play chess, I have played MTG/Yugioh/Pokemon/Etc competitively since 2000 which is where my Swiss experience comes from. The TOs ALWAYS extend the rounds if one of two things happens (in most cases):
1. If there are more than one player with an undefeated record
2. If there are players with only 1 loss that don't make the play offs (this is subject to change due to time constraints, or if there are so many entrants that this is bound to happen.)
Furthermore, rounds only last 40 minutes. There is a 40 minute time limit, and an end of match procedure to dictate matches that haven't ended by then, so a round will take roughly an hour to complete, which is why these rules are viable.
Remember that there are OTHER games that use Swiss Elimination for seeding. It's not just Chess. :\
Also from my experience with melee, it takes about 20 minutes for a room of 20-24 entrants to run through a round with 5 tvs.