Thats an interesting point, Mogwai. The second tournament I went to I had to face my friend/doubles partner in the first round of the losers bracket after we both lost to ranked players (I lost to V, he lost to Pipe I think). It was a shame because we were on equal skill level, but he beat me in a squeaker and advanced to 17th place, but I wound up tied for like 50th. It was unfortunate, but im not sure that tournament was seeded. Also, its impossible to seed unknown players effectively.
The problem with taking liberties with the losers bracket is that it is also seeded so that the best players in the losers bracket advance as far as possible as well, so if we mess with that then we are in danger of two potential semifinalists knocking eachother out early in the losers. Im open to other possibilities if they seem doable, so if you got an idea, well implement it.
Actually I just got an idea... its impossible to predict upsets when u seed, so after the first round of the winners bracket, we can reorder the losers bracket based on their original seeding. Or maybe we shouldnt, because if they were seeded correctly they probably shouldve won. Another possibility would be to just NOT seed every single player, that way we can take a lot of liberties with how we set up the bracket.