I've never been a fan of giving a **** what the people want. They usually just want what's best for them, and don't put thought into much more than that. We all enjoy friendlies and money matches, but those shouldn't be run during the tournament, in my opinion. I think it benefits everyone to have the tournament run promptly, so even if you have less fun at a tournament because of it, I think it's worthwhile. Tournaments are not, in my opinion, about having fun; they are about competition.
And I agree that it's not a big deal if worse players have to play best of three, but at the same time you're making them play a "different" version of Melee simply because of their level of skill (or, in many cases, how they are seeded in the bracket). Everyone's tournament fee is the same in my eyes, and I don't think better players should receive better treatment (i.e., get to play longer sets) just because they are better. And keep in mind that this also benefits better players who are doing worse in a particular instance (if, for example, you ****ed up two matches in a row, you can pick up and comeback in a best of five).
People may not want to watch best of fives, but that's also not an issue I consider worth worrying about. If people don't want to watch, they don't have to watch, but I won't make rules to pander to their flimsy, fickle preferences. It's assumed that most people don't want to watch Peach dittos or Puff dittos, but we would not change rules for that reason. Preference is not enough to warrant a rule.