I'm in the same area as KMRUNOUT, we do play in different rooms as our main areas though. Where I play, there are no limits on skill, and in the two weekly tournaments I play, it's even races for any skill level.
You have to look at it from the point of view of the other players, if it's a casual bar event or something like that, players don't want to have to watch someone run out on them when they are used to getting 3-4-5 turns a rack. Bad for their ego, not fun for them. The people that run the tournament don't want to have strong players come in, win all the time and then have 75% of the players stop playing.
This actually happened to one of the tournaments I play in, my son and I started playing in a new room for us as regulars, played in their weekly handicapped event as 6s, with most others being 2s, 3s, 4s. We still won often, one of us was in finals every week I think, sometimes we would both be in finals. After a couple of months the weaker players just sat around complaining about things, then stopped playing. Their solution was not to practice and get better but to quit. That is most weak players. The issue is that places don't want to lose most of their players to cater to a few good players.
The funny part is that those players that quit, many would still be there to play at the same time and be paying the same in table time as tournament entry, which gives you free pool all night LOL Without having players with a strong ego and mental strength to play and lose and try to get better, there will be places that ban good players or lose weak players when good players show up.