I like the format, and I like how none of the races will be shorter than 9 now. It seems like the only room for complaint will be from the players who draw the world-beaters in their first match. That first loss puts them under the gun in a big way. But it's no worse than drawing a world-beater in the first round of a standard double-elimination tourney. And since nobody will advance from the first round without having exactly two wins, and nobody will go home without exactly two losses, there's not really any room for complaint about who does and doesn't "make the cut".
I do agree with Jay that 17 seems like a big jump, 13 or 14 might be better. We'll see a champion with serious endurance, I think.
-Andrew