I really like this idea. Hopefully it will bring more people into the competitive community. My only issue is that it is the same day as SCS. I know Saturday is busy with Cronus, so there isn't any real options. Perhaps move it to Saturday once Cronus is complete, this way there is more options for people who simply cannot participate on Sunday because life.
I like this idea because, despite the lack of brackets and finals etc. . ., it is still organized in nature. This is a great for organizers to get into the mindset that is necessary to establish any kind of long term, stable, and reliable team for a competition. Newcomers will learn the basics to organizing events.
I myself see this as a opportunity to try casting an event. Hopefully there is a spot. Likewise, others might see it as an opportunity to ref. This is a great idea.