I am in full agreement with HugS. I must once again boycott this tournament, and I suggest anyone serious about this game also avoids this. If we let them get away with it, "it" will never end. It is CLEAR that competitive players do not want items.
When I begin holding tournaments, I will choose to avoid promoting regulations(such as item inclusion), which would be a grounds for complaint or injustice.
Again, if you want to host a tournament for casual gamers or kids, you need to say that in your advertisement. Judging by the rules, this tournament is for children. If you are going to include items, it should just be a round robin type thing, where there is no winner, where its just for fun, as Sakurai intended.
In fact, if you are willing to change your advertisement and direct it to casual gamers, I will come to the event and treat everyone to cupcakes. You heard it, free cupcakes