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Tournaments, unless there's a situatio created by an emergency, tend to represent bad booking. Not all the time and not in cases of historic things like the G1 but as a loose rule it fits.
Tournaments allow bookers the opportunity to use many different wrestlers without having to give them any storyline or character development. Essentially the tournament itself is the story.
Again this isnt always a bad thing and you can introduce new people in this manner but like most things in wrestling, if you overuse them then it usually means that you need more ideas and your lower talent need more promo time.
I dont watch AEW as its not really shown on my country at a decent time so I'm not sure of this description fits whats happened there, but I'm just talking about general booking philosophy.
Its like battle royales. Some promotors always use a battle royale on a big show because its an easy way to jam everybody on to the card without having to give them development. The BritWres scene had a real problem with this for many years.