I think it would be interesting if some tournaments (all kinds, including the elimination ones and correspondence ones) would be played with a “reduced handicap” and if the “create game” screen also supported this.
If the difference in kyu level is d, then the combobox “handicap” could (besides current choices “0” and “d”) also contain choices “d-1”, “d-2”, “d/2” and “3/4 * d” - various forms of reduced handicap.
Then a weaker player might win the tournament if he or she performs better than usual.
I think it would generally be attractive if tournament conditions were very diverse, so some tournaments might be done like this. I personally feel very discouraged when I am assigned to play an opponent stronger by 12 kyu - and even more if it is in an elimination tournament.
With a reduced handicap, the weaker player would have a chance and the stronger player would not win effortlessly.
What do you think?