I can see exactly where this comes from. If slots are allocated based upon how high your rank is, then one would assume from this that all the veterans of previous events, and by no means a ludicrous assumption to make, your friends would be given first choice of slots beating out any potential other pilots at a chance to play. This is actually nepotism, this is how it comes across.
I for one feel the event should be fully inclusive and there really wasn't anything particularly disorganised I noticed about the previous 2 rounds registration methods, and I followed the last 2 rounds closely seeing as friends of mine participated in both.
Additionally; how about reserving some of the slots for the open registration part?