Perhaps there should be a limit on how many tournaments any given player can enter on a given day, so that everyone else can have a chance? If the amount of tournaments a player can enter is limited, that gives everyone a chance to enjoy this great new feature, because then these greedy players can't enter every single tournament they have items for (which is probably all of them).
After thinking about this a while, maybe a daily tournament entry limit, combined with only being able to enter tournaments within a certain range of your current level will do the trick. Hunted cow can put in FSP upgrades to buy additional daily tournament entry slots (say up to a max of 50), and no-one is allowed to enter a tournament that is more than 25 or 50 levels away from their current level.
Doing this means:
Hunted cow makes money from fsps;
Everybody gets to enjoy the tournaments;
There is at least a semblance of a level playing field instead of what is happening now.
I like this idea, to limit the number of tourneys per day each player can enter. I also agree there should be some limit to the levels that are able to enter, as the higher the player level the more resources the player has to own the best equipment. Maybe within 50 levels? 25 is too few I think.
I also agree with previous posts that 256 players is too many per tourney, just looking now and nearly every open tourney is one that requires 256 entries for minimal fsp prize. I think either the number of fsp needs to increase & number of fsp prize tourneys decrease, OR the max number of entrants should be decreased.