I personally am well up for a revamp of the tournament system. I think the main problem with the second option VA is people travel and come to tournaments in order to play the good people, and that kind of stops that happening. I know it's an extreme example but having travelled all the way to Lyon a couple of years ago, I woulda been gutted had I not played someone amazing.
The first option however I have been campaigning for since joining smashboards. In fact, if you look, it's actually one of my first ever threads that I made. Obviously, there are time concerns with this, so for the following, I'm presuming doubles isn't happening at this monthly.
Start off with pools, have 8 hypothetical pools of 5 people. Top 2 go through pools as 1st and 2nd seeds.
The rest then go into a SINGLE ELIM bracket, double elimination is overkill at lower levels, as it's essentially a second chance anyway. Seedings don't even really need to be done for this, just chuck all the people in tio and let it create a random bracket.
Then top 4/8 progress as 3rd seeds and join the top seeds in the double elim bracket. I'd suggest 8 in this instance as 24 man bracket is more desireable than 20 man.
If doubles were to happen, the ideal time is just before the amateur bracket and the lower level players would be knocked out earlier and could start the amateur bracket sooner.
IMO, there should be either be 4 OR 5 POOLS, TOP 2 go through. That gives us 10 people into bracket. Then the rest go into the amateur bracket to fight for the remaining 6/8 places in the bracket in single elim, which will give us the perfect bracket number (16) rather than having to mess around with 24 man brackets etc.