I like the blind draw idea.
Mooch isn't a sponsor and you and I are fans so I'm not sure it matters what the three of us think.
A blind draw could ruin an established AA team that has been in the conference for years by pitting them against major teams in their first game in each tournament. Or two major teams could play each other in the first round thus screwing many teams in the losers bracket. The current system allows all teams a chance to compete and as long as there isn't upsets every team can compete fairly equally if not in the winners bracket then at least in the losers bracket. Any system is going to screw someone but the current system screws the least amount of teams and especially returning sponsors.
The current system makes returning sponsors happy so I'm not sure there is any want to change it. But I am willing to see if teams want it changed and bring up the discussion.