My main point is that not every tournament can (nor should be) a major event. It's not feasible, and it's certainly not logical. Certain times of the year, certain areas of the country, etc. just make it easier for a lot of the talent to get to one place more than others. But, like most pro sports, these other tournies, while not necessarily stacked with talent, will probably have a decent handful of good players that one could beat to establish themselves as a name. But as far as like, someone placing top 16/9th at a smaller event like that, it doesn't necessarily build a big case for being a dominant player. Which just makes sense.
At no point do grassroots events stop being a wonderful opportunity for the community at large, it just means that they don't have to pump themselves up as a "major" in order to get players to come. People will come regardless, and if top guys decide it's not worth their time, oh well, can't mourn forever. But you'd better believe that if a major upset happens in that area and they get a sense that there is some major talent in the area, they'll come out the next year.