If its truly going to become an e-sport, it can't apply what's best for the fans, players, or tournaments first. They must first protect the integrity of competition. Then, they must protect what is marketable.
They need a venue that people will pay to go to consistently - so venues must make concessions for those playing and those that paid to be there to keep them coming back. I actually think tournaments should be coupled with cosplay events set in the same universe to increase the people there - and it would also help to improve the product from a viewer standpoint.
Lastly, our competitors need to embrace fans. You don't see Lebron James shunning fans because they can't compete with him in basketball - and you shouldn't shun players that can't compete with you. If they're going to help support the sport, give them their moments here and there.
On whether to go to a best of 5 - since it helps with the integrity of competition - it is a great idea. I just wouldn't do it before top 8 because the larger tournaments would just be too long then.