Just for fun...when I was a kid they had huge tournaments in Manhattan annually. You would wrestle the first round seeded and drawn. The losers of first round matches would go into a "consolation bracket" in the same weight. Usually weed out about right, and made sure everyone at least had a chance!

I do agree with separating Novice and Open, and wrestling round robins for novice for experience. And what is the harm in occasionally making sure everyone has a tangible reward for participating and giving the effort, even if they aren't very good-YET.