Here is my option on this! In the little town I play at we have an open/handicapped $10 entry tournament every Saturday that brings in player from everywhere.We have had pro's such as Bob Vanover,CJ Wiley, Rodger Griffis, and others non-pro's such as Kid Delicious, James Walden, Jeff Melton, Fargo, and Jim McDermott from Magoo's. Since the room opened in 1986 this tournament is still pulling in 25 players a week end and as high as 52 one week end. Our local players range from Grandmasters to C-players. Playing better players has improved the caliber of players in our area. I venture to say that we have improved from 10% A-players to about 70% today. Yes, it was slow in the beginning to convince a C-player that they weren't wasting their time and money, but for $10 a week where can you get cheep lesson like that.
I have been on the management side also, so I under their view if it is hurting their business. But if you have top players willing to help others it will work out in the long run. This is what has helped our tournament build bringing in new players and built our leagues.