I agree with the original setup. Although the 5 points for each games seems a bit much. A single bo5-game could win or lose you more points than a total tourney win in a private cup.
Would be cool also to determine the number of points for a tourney result by adding up the ranks of the participants.. or even the number of participants. Winning a rope tourney of 32 seems worthy of more points than an 8-player one with just noobs in it.