To be honest, I don't think there is a solution to the format that would please everyone. The old way, low level players were at a huge disadvantage and had no real chance against experienced players.

With the new system, at least everyone has a chance of progressing, even if its only a slim one. Even if the cup was a level based competition, it still wouldn't stop people who want to spend loads of tokens, from increasing their quality to gain the upper hand.

Scenario: What is best? Level 5 player with good team verses level 7 who doesn't spend a lot of tokens, and the respective qualities are almost level, or, two level 5 teams but one manager spends many tokens to improve their team and become 6-7 quality better from the start?