The Kansas Cup is going to rotate between the 3 Universities that have wrestling sanctioned teams hosting (FHSU, Newman, and Baker), so that should allow all regions to see it.
As for teams having too much to lose with a dual format, add them to the P list, I mean honestly why even do a point scoring tournament then? If at the end of the day you look up at the scoreboard and wind up behind a junior college in this invitational style, are you going to think it is the end of the world? (Maybe if you are a horrible coach). The good ones would use this as a weapon and say to recruits, hey we need help at this weight so we can be that much better.