To be honest, I don't agree with this at all. I don't think there's anything to
be gained by leaving China to get thumped by PNG by 300 points in a pool
game.

By my reckoning, more than 50% of the games would be slaughters of this
magnitude, I reckon you're underestimating the gap between the best and
the worst.

In a two-division structure, the games will be far more even. You might get
one or two blowouts (ie is 1st plays 8th in a given division), but not to the
extent of what you're proposing where every second game would put
someone from the front pack against someone from the relative newbies.

See US Nationals for details.

Not perfect, but I definitely believe a divisional structure is the better option.