Major events need to be seeded for the beneift of fans, sponsors, and promoters, many of whom can only attend (or purchase the PPV for) the final rounds that are played on a weekend. A tournament should build to a crescendo and seeding increases the likelihood that it will produce a truly memorable final four on the last day of a main event.
As many correctly point out, the problem with seeding is the absence of a truly objective ranking system, but if a ranking system to which all bought in existed, I think seeding serves major tournaments well, and I don't especially care if it scares away some of the dead money.
Contrastingly, tournaments having minimal fanfare and viewership need not be seeded.
You touched on a new problem. PPV! How many potential spectators just stay home and buy the stream? Yes, they are paying for their viewing. How do the pool related vendors in attendance profit? How does the host venue profit? There are no food, beverage or accommodation sales to PPV customers. You need physical customers to benefit everyone else. Do PPV customers care if the streamed matches are Sunday night or Thursday morning?
I'm somewhat offended by your "dead money" comment. The vast majority of ANY open pool tournament, "professional" or not, is subscribed to by players just like me. Perhaps "shortstops". Perhaps just locals who want to say they played the best. Without us dead money guys there are NO major events. Who is looking out for me?
Lyn