Too bad about Cheapy not wanting to "Officially" (heck even unofficially) support this. This is the kind of community-building thing that makes good game sites great.
I mean, can you imagine a Capcom or Namco-sponsored CAG fighter tourney?
Granted, 2D fighters are as niche as genres get these days, but really, if there's a market...?
Actually, CAG should pop a tourney for whatever game/system CAG members want. Cheapy has the affiliate ties to sponsor his own prizes, if he really wanted, and if he and Wombat are now on good terms with MS, then why not more XBL stuff, too?