I think a seeded type draw like you suggested would be fairest. Mixed quality where preparation actually meant something. Seed 1 120%+ seed 2 110+ seed 3 100+ seed 4 under 100
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under them circumstances tho, what realistic chance is there that the highest team wont go through? and if they don't there'a still little to no chance the lowest team will anyway, so might as well just put all the best teams straight into a knockout