I agree more or less with everything you suggested CEB, except for the quoted bit.
1) We are not limited to just one type in our teams and ASB Gym Leaders in the past were not limited to one type either. So I don't think they should limit themselves based on a single type alone.
2) Not being limited to one type allows for a more challenging battle because one can't go rushing in with a team that knows one super-effective move and start dropping others left and right (I used the Games as a good example of why we shouldn't have Gyms limited to one Type alone, too easy to Rape).
However as I did state before. If we Do go ahead with a Tournament, it should be limited in DQ time, in Reffing Time, and we need eveyrone, (and I mean everyone) at their best. Refs, Battlers, and the people organizing the whole thing.