Got more feedback here than facebook, but I'll include those comments too.
One advantage of a rating-based tournament is that every player definitely has a place, particularly women. I've already lost count of the number of times I've seen a tournament that offers a broad spectrum of divisions for men to choose from, and women are lumped into fewer divisions, and some are not even offered. (As an example, the pro side of the GBO has many pro men's divisions, and ALL pro women are lumped into open.)
Division based are better. Ratings don't say much about how good of a player you are. Basic statistics will tell you that.
It's a fun change up, unique formats are welcome in my book!