Having a reward for playing high level pool is good for the game. When up and coming players see top players winning tournaments, making money, and traveling the world, it encourages them to want to get to that level. Watching top players quitting pool at early ages and getting jobs or switching to poker isn't good for the game.
10 years ago I was winning a lot of local tournaments. It was really good for my confidence, and I was able to make some extra money regionally. In turn I would fire at the US Open, Seminole events, etc. I had the funds to play and I had the confidence of having won the last couple of tournaments I had played in. I remember feeling like a winner, having a little spring in my step as I walked into the pool hall.
In the last 5 years I have all but quit playing locally due to the lack of open events. The local handicap tournaments have gotten to where the top players no longer have an edge. I have given up 3 games to 8 against players that can run multiple racks from the break. I lost, lost, and lost. It got to the point that it affected my confidence, I no longer felt like I was a good player that was going to come with the shot for the win, I just felt like I was a big guy with my hands tied together being picked on by people weaker than me. I forgot how to expect good things to happen. I finally decided not to play them anymore. Now I play only 1-2 tournaments that are open with no handicaps per year. Otherwise I practice in my basement.
I can't imagine that is good for pool. You can say that 'people won't play if it's not handicapped', but that might be because there is no longer a reason to put in your dues because there is no reward at the top. If the reward for being a top player is being barred or hogtied then why should they step up and try to get better?
In an ideal world there should be both a bottom down and a top up approach, meaning reward for being at the top and some things to encourage people to take a shot. But I really do believe the best encouragement for people to take a shot is a reward for being at the top.
Too bad I don't think that's possible anymore. One of the biggest rewards for being at the top when I was up and coming was being the man to beat. Being the best money player in the local scene, the one that stepped up to play the out of towners, the one that was always in the biggest action. It used to be they were like celebrities. Now no one cares, they can see better matches on YouTube and people that could never play at that level still think "Oh, he's nothing compared to Ko Pin Yi". I've seen the finals of tournaments go from packed crowds in the 90s to empty seats. Top on travel expenses, recession, poker, attention spans/technology, and whatever else you want to throw in and I don't think this is turning around.
So in short, yes, I do believe top players should be able to play in tournaments. But I have given up any and all expectations of that and it wouldn't surprise me if my town didn't even have a 9 foot table left in 10 years. If you play pool these days you'd better do it for love of hitting balls by yourself, because there ain't much else out there to gun for.