The idea is to reward the better coaches and keep the cream at the top. Also an incentive to keep teams for having firesales and playing for next year. Looking at most worlds there is a huge difference between the Ws from best teams to worse team and it is because team bow out and don't care way too earily and just tank and rebuild.
However< I can see how some would think it is a horrible idea (which is only an opinion) so maybe WIS could offer types of Worlds with differnet cap structures like you can do in fantasy baseball, there is rotiserie, 5x5, H2H etc... HB could have HB 180, HB Dynamic etc etc