Hi Cameron,
I think the above statement must be a serious exaggeration, because it's pretty much mathematically impossible that this could happen in anything close to a professional-level tournament.
More likely is that a "no-name" player gets to maybe the third round on the winner's side before having to face a top player. The possibility of this happening is actually key to the success of a tournament, for reasons others have mentioned. The shortstops play these tournaments because of the possibility of a soft early draw. With a little luck, they can get into the money round, get some wins under their belt, and get to face some top players. Believe me when I tell you, you lose a high percentage of shortstops and players just below that when you start seeding.
So...I kind of disagree with a previous poster who said that seeding actually increases tournament participation. Maybe for the very low-ranked players this might be true - they know they're throwing away their money anyway, so they might as well lose to Strickland and Reyes. But there are very few of these players competing in professional tournaments. Often, the bulk of a tournament is made up of A and Open level players who aren't a threat to win, but can cash with the right draw and a couple of rolls.
I also implore you to sometimes take a look at the so-called no-names. There's a whole lot of them out there that might surprise you.
- Steve