I think this is a neat idea. I have heard that the prize pool for major tournaments hasn't gone up substantially in the last 20+ years. Would anyone knowledgeable comment on whether the entry fee has gone up much?
Of course, for some people increasing the cost will be a huge issue, but for others it will be no issue at all. I'm sure Efren wouldn't be bothered by this, for example. But clearly someone like John Schmidt might make it to fewer tournaments.
Even though you might not find as many great American players going, I think you might still fill the field. For one thing, you might get more strong international players for whom it would now be worth the expense to come. $500 extra doesn't sound like much when you're already paying $1500 for a plane ticket and $500 for the hotel.
$2500 (ticket, hotel, entry) to win $10000 vs $3000 to win $20000.
Anyone who plays poker knows the second scenario is way preferable!
However, for an American, travel expenses are a smaller percentage. For the American, you might have
$200 travel, $500 hotel, $500/1000 entry.
$10000/$1200 vs. $20000/17000
Here the main cost is the entry fee, and the American player's odds aren't helped nearly as much as the Int'l players. Still, their overall odds are somewhat improved.
Also--and this is just idle speculation--you might get more wealthy people entering the tournament. You might get "pretty strong" players that want a chance to play with the pros. They might be encouraged by a smaller field (as a result of the top players not being able to afford it), where they might advance further. I think this is somewhat the case with the major poker tournaments. They get enough people "who can play a little" enough money that they think they have a chance.