The thing is you consider that various players from same alliance is an advantage, but I don't see it that way. I think it just makes everyone join up against us.
In the previous game we were widely targeted, and now in a 5 players game, there's me and an ally against 3, so how is this an advantage? If we didn't have alliance tag, they wouldn't have joined against us.
I think however you plan it out, there will always be unfair situations.. oil distribution, players joinging up agains others, betrayals, etc.
And I'm not saying the tournament is perfect, there are a couple of things I would definitely change, but this is still a great iniciative.