Of course you get rewarded by loosing. Depending on game design, at least you had fun with friends. You NEED to reward people for participating in PvP, because there are real people involved who need the game to either be fun, challenging or rewarding to spent their time with more powerfull people they have no chance to really win against. You only have a point in sports or e-sports, but pvp is more than just that. But the pve design they are introducing more and more now where you only get rewarded at the end boss, is showing the same effect, the similar philosophy had on pvp: less players doing the content.
This said, i see no reason why not change the broken tournament queue into the old system or a system that at least lets you join with partially premade groups. Unless funcom deleted old versions of the game they even have everything there already. Mostly Copy & paste...