Your whole argument rests on what is right and what is wrong. Modding, or a scene of players adopting one, is neither. There is nothing to prove here.
And in the tournament scene, cheating is wrong. This is why they're not accepting your invitation. You're only proven that your idea won't work because of how badly flawed it is.
http://en.wikipedia.org/wiki/Cheating_in_video_games Perhaps you should read this first. Modifications to the game has always been cheating.
If a company who made the game puts out a patch, this is the sole exception for one reason: They are the owners of the game and can make any change they wish because they created it. They therefore cannot cheat by how it works.
We picked a perfectly acceptable route. Also, by your logic, no items, stages, or techniques should be banned. Despite those techniques being created by the players, not the actual game. Unfortunately, that's not the case. If things prove to be a problem, banning is an acceptable practice. Don't act like it's not because you believe a method of cheating is the better option. Once again, it's not.
Are you telling us cheating is a perfectly acceptable act in a Tournament? Because if you are, you're telling us we should not follow rules.
@Shadic: If you payed attention earlier, I acknowledged that modifying a system wasn't illegal. Thankfully, I cannot find an ignore button, which would apply to quite a lot of people on this board.
@Mikhas: Read number 6 very carefully.