Well, I kind of described it earlier, and you reinforced it. Guy has a certain level of training, but for whatever reason loses his instructor. Decides to open his own place, sans-oversight. There's my first issue. Do I understand how it could happen? Yes. Unfortunate.
Guy then gets together an association of ronin-of-sorts and agree to a curriculum, standards, and start promoting each other. And their students. There's my second problem.
You also mentioned required seminars and tournaments for promotions and that's my third problem with this. That's not martial arts, that's a business. And while I completely understand why people choose to run martial arts as a profit center, it's not for me.
Please understand that I mean no ill will, but it's contrary to what I want or why I train. My sensei has a sensei, and his sensei was the founder of our style. We have an actual lineage, and each sensei was given permission to teach by their own instructor. I see that as incredibly important.